Sears takes $443M in charges from store closures

By RetailFOXBusiness

Should Sears CEO Eddie Lampert be blamed for the company’s downfall?

Layfield Report CEO John Layfield, Kadina Group president Gary B. Smith, former Obama economic adviser Robert Wolf, FBN’s David Asman and Dagen McDowell on Sears filing for bankruptcy protection.

Bankrupt Sears Holding Corp. will incur $443 million in charges related to store closures amid ongoing bankruptcy proceedings, the company disclosed in a regulatory filing late Tuesday.

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The struggling retailer said the $443 million in charges includes $81 million in product price markdowns, $9 million in employee severance costs and $335 million related to lease terminations. Sears plans to shutter 142 unprofitable store locations by the end of its 2018 fiscal year.

Sears said some of the charges were reflected in its third quarter earnings report. The remainder will be applied in the fourth quarter. The company will hold “going out of business” sales at the stores tabbed for closure.

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The company filed for Chapter 11 bankruptcy last October amid years of sagging sales and declining store traffic. Hedge fund magnate Eddie Lampert stepped down as CEO, but remained the company’s chairman and largest shareholder.

Earlier this month, Lampert submitted a $4.6 billion bid to buy Sears’ remaining U.S. stores out of bankruptcy. Several other companies, including Burlington Stores and Dick’s Sporting Goods, have reportedly expressed interest in buying some of the retailer’s real estate locations.

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