Tags: sears | ceo | kmart | shutdown | rumors

Sears CEO Blasts Kmart Shutdown Rumors

Sears CEO Blasts Kmart Shutdown Rumors

Banners hang on a Sears store in downtown Chicago in this April 4, 2007 file photo. (AP Photo/Charles Rex Arbogast, file)

By    |   Wednesday, 05 October 2016 11:01 AM

Sears’ CEO Eddie Lampert blasted rumors that Kmart is shutting down in a blog post calling the claim "irresponsible."

Sears’ shares decreased more than 35 percent this year, and bankruptcy rumors surfaced after ratings agency Fitch named Sears among several retailers to see a failed debt report, but the CEO’s support of the company has not wavered, CNN Money reported.

In a blog post that was published on Monday, Sears CEO Eddie Lampert responded to the claims surrounding Kmart.

“I can tell you that there are no plans and there have never been any plans to close the Kmart format,” he said. “In fact, we’ve been working hard to make Kmart a more fun, engaging place to shop, powered by our integrated retail innovations and Shop Your Way.

“To report or suggest otherwise is irresponsible and is likely intended to do harm to our company to the benefit of those who seek to gain advantage from posting these inaccurate reports.”

Lampert’s comments came after multiple reports were made from Wall Street analysts, claiming that the company was near bankruptcy, Business Insider noted.

“We are working to restore the company to profitability,” Lampert told investors in the blog post. “We are focused on executing our plan and establishing a foundation from which Sears Holdings can grow for years to come.”

However, he added that the company “won’t be able to restore profit immediately.”

Sears and Kmart merged in 2004, but there have been rumors that Sears has wanted to pull the plug on the partnership, CNN noted.

Even though those rumors have also been denied, it has been said that the company plans to sell three of its widely known brands: Kenmore, Craftsman and DieHard, CNN noted. The company’s shares increased 16 percent on Tuesday after Bloomberg reported that Stanley Black & Decker was among the bidders for Craftsman.

Whether the rumors are true or false, Sears has been a shell of itself in recent years, and Lampert has been on record saying, “The retail environment generally has been challenging.”

The same applies to fellow retailers like Macy’s, Kohl’s, and Target, CNN noted.

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Sears' CEO Eddie Lampert blasted rumors that Kmart is shutting down in a blog post calling the claim irresponsible.
sears, ceo, kmart, shutdown, rumors
Wednesday, 05 October 2016 11:01 AM
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