Sears Files For Bankruptcy, Two CT Stores to Close

Sears Holdings Corporation has filed for bankruptcy. The department store chain owned their namesake, Sears, and discount retailer Kmart. The company filed for Chapter 11 bankruptcy early Monday morning after years of slumped sales, crumbling stores, and money woes. Chapter 11 Bankruptcy is usually used for restructuring a struggling company by eliminating debt and closing stores.

Sears and Kmart, which have very few stores left in Connecticut (Including Sears in Manchester and Kmart in Vernon) have filed documents for a planned iquidation of 142 stores between both brands. Both Sears in Manchester and Kmart in Vernon are safe from liquidation for now although, as seen in Toys R Us' bankruptcy, Chapter 11 Bankruptcy (restructuring) can quickly become Chapter 7 (Complete Liquidation.)

Only two Connecticut stores are on the list of liquidating stores, Sears located at Connecticut Post Mall is slated to close, and Sears located at The Crystal Mall is slated to close as well. It is unclear the timetable for liquidation, and its unclear at the moment when an official list will be released. 

Here is a link to Bankruptcy files outlining strategy for restructuring: ​https://restructuring.primeclerk.com/sears/Home-DownloadPDF?id1=MTA5NDcw&id2=0

​Images Courtesy of Sears