Legendary Sears declared bankruptcy
Sears, Roebuck and Company went bankrupt on Monday. The company’s power was symbolized by its Chicago headquarters in Sears Tower, America’s tallest office building. The company’s liabilities together with interest amount to $5 billion. Sears’ debt service alone costs 440 million dollars a year.
The declared bankruptcy of the company pursuant to Section 11 of the U.S. Bankruptcy Code provides protection for the network and gives time for restructuring. The management of the corporation hopes that the measures taken will restore its profitability.
Before Sears declared bankruptcy, many other retail chains also decided to declare bankruptcy, including the Toys’R’Us toy retailer. According to experts, the above mentioned companies did not withstand the competition from online shops and became victims of the “Amazon effect”.