Sears Holdings
Sears Holdings has been experiencing some problems for around 10 years now, with the continuing decline of their sales. It appears that this company has tried everything to stay afloat – cut costs, sell assets, close stores, and even lay off employees – but according to RetailDive, all of those steps did not help the huge department store much. As a result, in October 2018, it had to file for Chapter 11 bankruptcy, stopping the operation of 142 stores in the process. The CEO, Eddie Lampert, attempted to avoid bankruptcy by getting hundreds of millions of loans from his hedge fund (of course, with corresponding interest). However, things didn’t look so good for the retailer, and even a hedge fund couldn’t help it stay afloat.
Sears Holdings
99 Cents Only
This retail company, which offers discount products, has found itself in a very difficult situation because of the competition from other companies such as Dollar Tree, Walmart, and Dollar General. It even reported a net loss of $27.1 million in December 2017. That is in addition to the $33.6 million in losses it has incurred in the second quarter and another $8.8 million in the first quarter. This 35-year-old company has tried to turn the tide. It was sold to Ares Management, then to Canada Pension Plan, and eventually to a private family. It even got itself a new CEO, Jack Sinclair, replacing its former CEO, Geoffrey Covert. Despite the reports of it having positive same-store sales, the fact remains that 99 Cents Only is still in a losing game, just like GNC, the vitamin retailer.
99 Cents Only
