In February 2019, it was announced that a U.S. In papers filed on February 1 with the bankruptcy court, ESL "outlined plans to close three Kmart stores per month in 2019" if the court decides to accept ESL's purchase bid. On January 28, the federal government-operated Pension Benefit Guaranty Corporation announced that they were not in favor of the current Sears Holding agreement with Lampert since that agreement would create a $1.7 billion funding gap in the employee pension fund that would require the American tax-payers to cover the shortfall. The creditors had requested that the bankruptcy court rule to have the company be liquidated instead of being reorganized so that the creditors would be able to recover more money that was still owed to them. On January 24, 2019, a group of unsecured creditors, which included Simon Property Group, filed a motion with the bankruptcy court to overturn the deal Sears Holdings had recently made with Lampert claiming that Lampert had been "engaged in serial asset stripping" of the company at the expense of suppliers and landlords. On January 19, 2019, Sears Holdings officially announced that they had won the auction, and that some of the then existing stores were to remain open. A new deal was struck at the last minute that would keep up to 400 Sears and Kmart stores operating. On January 15, 2019, when it had appeared that Sears Holdings was preparing to file for Chapter 7 liquidation, the bankruptcy court judge ordered the company to return to negotiation table and work out a new deal with Eddie Lampert to prevent the liquidation from occurring. Most of the proposed locations are in highly populated coastal regions. In a proposal announced in early January, Sears Holdings plans only to keep 202 Kmart stores along with 223 Sears stores open, assuming that it survives the bankruptcy process. On December 28, 2018, Sears Holdings announced it would close 80 additional stores, including 37 Kmart and 43 Sears stores. However, the stores for sale are not guaranteed to be protected from liquidation in the future. On November 23, 2018, Sears Holdings released a list of 505 stores, including 239 Kmart and 266 Sears stores, that are for sale in the bankruptcy process while all others are currently holding liquidation sales. On November 8, 2018, Sears Holdings announced it would close an additional 40 stores, including 11 Kmart and 29 Sears stores. Sears Holdings' bankruptcy also marked Kmart's second bankruptcy in 16 years. On October 15, 2018, Sears Holdings announced that it would close 142 stores, including 63 Kmart stores and 79 Sears stores. The company filed for Chapter 11 bankruptcy protection on October 15, 2018, in New York the same day that a $134 million debt payment was due. On October 10, 2018, it was reported that Sears Holdings had engaged advisors regarding an imminent bankruptcy filing. (See Sears Holdings#History for more detailed history of the intervening years.) Įddie Lampert led the company for the next thirteen years. The combined company had approximately 3,500 stores at the time of the merger. The merger was completed on March 24, 2005, after receiving regulatory approval from the government and approval by shareholders of both companies. The company continued to market products under brands held by both companies. Sears Holdings then operated Sears and Kmart stores. The result of the merger was Kmart and parent Kmart Holding Corporation and Sears became subsidiaries of the new Sears Holdings Corporation. The merger of Kmart and Sears closed on March 24, 2005, following affirmative shareholder votes of both companies. The new corporation announced that it would continue to operate stores under both the Sears and Kmart brands. The new corporation became known as Sears Holdings Corporation, simply known as Sears Holdings. Kmart previously emerged from Chapter 11 bankruptcy protection on May 6, 2003. On November 17, 2004, the management of Kmart Holding Corporation announced its intention to purchase Sears, Roebuck and Co.
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