Almost a year after it's Canadian entity filed for bankruptcy, the long slow decline of the infamous and storied Sears filed for Chapter 11 bankruptcy protection in the U.S., buckling under its massive debt load and staggering losses.
After 65 years, at times being the benchmark of retail, the long slow decline of the giant has ended. Many are quick to point the finger at management. President Trump commented that it had been "improperly run for years". It is easy to point the finger, but in recent years we have seen many of it's similar competitors fall on harder times if not extinction. The change in the consumer products/retail sector has caused brick & mortar locations scratching their heads. While trying to keep up with the internet shopping age, many consumers are shopping from the comfort of their.... well, wherever they have internet signal, and the elephants just aren't dancing.
Sears is hoping that a Chapter 11 filing will allow them to strengthen their balance sheet; however, the Creditors and Vendors will be left out to dry and prop up the company. The strategy is hoping that a smaller Sears will be more efficient and competitive. This leaves vendors demanding more stringent credit terms, and shortages in merchandise for the troubled vendor. If your company is still trying to do business with Sears, we have solutions that can protect your receivables as you continue to do business with them. If you have not recently reviewed your sales strategy as it relates to credit, you might be missing out on top and bottom line growth on your balance sheet. Contact us today so that you're not paying for others mistakes.