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Even if you feel like you have heard of Sears recently that you've been doing it for some time, it's probably not for the best reasons. Over the past decade, the former iconic retailer and the cornerstone of many local shopping centers have experienced a dramatic inversion of fortunes. Today, the company is fighting to stay afloat While subsidiaries like its home & life and appliance & Mattress continue to decrease in numbers. And now, its stores in the hometown of Sears have just filed for bankruptcy in what the company calls a "rapid descending spiral". Read the rest to see what this news means for the retail giant.

Read this then: Big Lots has just announced "an accelerated number of closures" .

It seems there to be More problems to come For the largest retailer in the country. On December 12, Sears Hometown Stores Inc. filed for bankrupt Bloomberg reports. The subsidiary branch of the department store giant said that it had at least $ 50 million liabilities with less than $ 50 million in remaining assets in its court documents.

The Smaller format stores are a fraction of the average size of the Sears store, ranging from around 8,000 to 10,000 square feet against 160,000, respectively, reports CNN. Stores also have a limited inventory in comparison, focusing on tools, lawn care equipment and household appliances rather than large offers of department stores.

The news is the last of a tangled saga that has been held in the last decade, starting at the moment when Sears Hometown was initially transferred in 2012 to a decision to collect funds for the retailer in difficulty. While Sears traveled the decade after its merger with Kmart, its new mother company Transformco finally reacted to Nearly 500 stores Seven years later, just a year after declaring the bankruptcy itself, reports diving. AE0FCC31AE342FD3A1346EBB1F342FCB

At the beginning, the company tried to liquidate its recent purchase in 2019. But this decision was made when the former director general of Sears and CEO of Transformco Eddie Lampert I took drastic measures to prevent it by replacing the members of the board of directors and by modifying the statutes of the company, reports diving at retail.

The following act of stores learned that stores in the hometown of Sears were the best chance of the company secure your future for a moment. In a declaration at United States today In September 2021, Transformco declared that its "store strategy at the front for Sears and Kmart was to operate a diverse portfolio made up of a small number of larger and first -rate stores with a larger number of stores in small format." The company said it included the Over 300 hometown stores which were opened at the time, which were "mainly exploited by independent dealers or franchisees of a transformco affiliate".

But in his file, Sears Hometown says that its current position is the result of always depending on "largely of Transformco to provide key products and services" even if the parent company has not displayed support. The disputes concerning this arrangement have increased in the past year and exacerbated the difficulties of the store, writing that a "lack of inventory caused a rapid descending spiral which contributed to the deposit of these cases of chapter 11", by diving at retail.

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The stores in the hometown of Sears also go bankrupt after years to see its in the past considerable to shrink. Today, the company fell to only 121 stores in the United States, marking a significant drop in relation to their punctual summit of more than 700, reports CNN.

Last year was particularly difficult for the retail subsidiary. In May, more than 100 locations in the hometown of Sears announced that they were closing "Caration for about half of all remaining stores," reported CNN.

Many owners of independent stores went to social networks to announce their last days And promoting liquidation sales, some quoting that the decision to close was not theirs. "I want people to know that it does not happen because the community has not supported us", " Teresa Busbee , the owner of a store in the hometown of Sears in South Carolina, wrote in a Facebook article on September 15. "It had nothing to do with the community or the property. It was strictly a corporate decision taken by Sears. We were taken in this wave of closures, and there is another coming. To more Sears in South Carolina stores. "

But while the subsidiary now in difficulty can face a difficult route to come, some experts maintain that the company was once ready to succeed. Compared to large department stores - which have decreased Only 15 locations —Sesars selection of the hometown, generalized locations and intimate purchase parameters made it a viable competitor at a given time. Unfortunately, this no longer seems to be the case.

"In practice, these advantages have been wasted," Neil Saunders , Managing Director of the GlobalData Retail Market Studies, said in the comments published to customers by e-mail on December 13, by diving in retail. "Transformco has done very little market to market and promote Sears in the hometown, and it did not do much to differentiate the chain. Instead, it followed the similar model of continuous decline which was The brand of Sears brand, with hundreds of stores closing earlier this year. "

"The advantages of having access to unique goods via exclusive products have also been lost, because the various brands that Sears are held in the past have been sold and are now distributed more widely in retail," he Added. "Bankruptcy will sell various assets and will probably offer the flexibility of the transformation to decide how to distribute its remaining brands and services."