The Sears store in Sunrise Mall, Corpus Christi, will remain open as the company files for bankruptcy and prepares to close 200 stores by the end of the year. Photo by Roland Chiapoco
Around 200 Sears stores are closing across the U.S., but not the Sears at Sunrise Mall. At least not yet. The department store, which was known as the store where America shopped, filed Chapter 11 bankruptcy Oct. 15. Smaller “Hometown” stores in Alice, Kingsville, Beeville, and Fulton will also remain open for business.
Earlier this year, Sears Holding closed all but 700 of its 2,300 Kmart stores, including the Portland Kmart. The bankrupt store is the anchor of Sunrise Mall, which declared bankruptcy in 2011 under the ownership of Premier Tierra Holdings, Inc. Sunrise Corpus Christi LLC took over the deed for the mall in 2016. The Sunrise Mall Sears is one of the few stores where the company actually owns the property.
Sears began in 1887 selling watches. Once the dominant brand in American shopping, it has struggled in recent years to avoid having to file for bankruptcy protection. It was pushed over the edge when it failed to pay $134 million in debt by deadline. Hundreds of vendors are no longer shipping goods to Sears stores because of overdue bills.
Controlling shareholder Edward Lampert, who stepped down as Sears CEO, plans to provide a $300 million financing package to keep the business afloat. ESL Investments may also be putting in a bid for 400 of the most profitable Sears and Kmart stores.
Another $300 million financing package is already in place, allowing the company to keep the remaining stores open and make payroll as it restructures.
Before the closings begin, the 687 Sears and Kmart stores employ about 68,000 people. Of those, only 32,000 are full-time. In 2016, some 178,000 people worked for the company. The company has lost more than $11 billion since 2011.
