A massive retailer is now making an unexpected comeback as it relaunches for the month of October.
Sears, which has closed most of its U.S. retail stores, is making a major full-time comeback in Burbank, per new reports.
“According to an October 18th report from CoStar.com, the once-mighty retail force is arising at the Burbank Town Center,” says Joel Eisenberg.
“The location, at 111 E. Magnolia Blvd., is a three-story longtime Sears that closed in December 2022 but hinted at reopening earlier this year.
The Burbank reopening comes as other big-box retailers plot a comeback, though they face stiff competition from both online and brick-and-mortar sellers.
Gabe Kadosh, a retail property broker and vice president of Colliers said, “I could see this being as a test to reopen in other markets with this type of store.”
“If merchandised correctly, it could do well.”
Sears, Roebuck and Co. commonly known as Sears, is an American chain of department stores founded in 1892 by Richard Warren Sears and Alvah Curtis Roebuck and reincorporated in 1906 by Richard Sears and Julius Rosenwald, with what began as a mail ordering catalog company migrating to opening retail locations in 1925, the first in Chicago.
In 2005, the company was bought by the management of the American big box discount chain Kmart, which upon completion of the merger, formed Sears Holdings.
Through the 1980s, Sears was the largest retailer in the United States. After several years of declining sales, Sears’s parent company filed for Chapter 11 bankruptcy on October 15, 2018.
As of June 21, 2023, there are 11 total Sears stores remaining, with 10 in the mainland US and one location in the US territory of Puerto Rico.
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A massive retailer has now survived Chapter 11 bankruptcy after the pandemic negatively impacted the business for over a year.
Party City has officially emerged from total bankruptcy after eliminating nearly $1 billion in debt and enhancing its liquidity.
“The covid pandemic put Party City in a difficult place.
People weren’t having parties, so the chain basically sold merchandise that wasn’t essential, or even relevant, to anyone.
That created a situation where the company, which was already struggling, burned through a lot of its cash reserves simply to survive.
And even when pandemic lockdowns ended, there was no major comeback for the chain.
People went back to having parties, but they did not go back to celebrate the events they missed,” reports TheStreet.
“Party City lost more than a year of birthdays, holidays, graduations and other celebrations, which forced the company into Chapter 11.
That process enabled the company to make needed changes to emerge and get back to its pre-pandemic business.”
In a press release, Party City said that it has completed its restructuring and emerged from Chapter 11 bankruptcy financially stronger and “well-positioned” for the future.
“Through its restructuring, PCHI has substantially strengthened its capital structure by eliminating nearly $1 billion in debt, enhanced its liquidity, and optimized its Party City store portfolio by having negotiated improved lease terms and exited less productive stores.
The company will move forward with nearly 800 Party City locations nationwide,” PCHI wrote.
Party City Chief Executive Brad Weston said he plans to step down as of Nov. 3 and will be succeeded on an interim basis by the chain’s president, Sean Thompson.
The company has emerged from bankruptcy with a new asset-based-loan facility of $562 million and $75 million in new investment to fund its ongoing operations, per reports.
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