Sears Holdings Corporation; Kmart and Sears as One
Abstract
Kmart a long standing discount retailer and Sears have merged to make up Sears Holdings Corporation. As the two struggling retailers combine forces, it will allow for both companies, now working as one to reemerge bigger and better than ever. Now they are in the process of restructuring their management structure, to hopefully be able to locate where their areas of weakness are.
K-mart, one of the leaders in department stores, has been around for over 100 years. Although the company was plagued with financial difficulties, and filed a Chapter 11 bankruptcy, they have bounced back and are stronger than ever. “On May 6, 2003, Kmart and 37 of its U.S. subsidiaries and affiliates emerged from the Chapter 11 reorganization process – 15 months after they filed for Chapter 11 in the United States Bankruptcy Court for the Northern District of Illinois on January 22, 2002.” (Sears Holdings Corporation, 2008). Within a couple of years of pulling out of bankruptcy K-Mart purchased Sears and the two once separate companies became part of Sears Holdings Corporation. “The merger of Kmart and Sears as Sears Holdings Corporation closed on March 24, 2005, following affirmative shareholder votes of both companies.” (Sears Holdings Corporation, 2008).
As K-Mart pulled out of their bankruptcy and then acquired Sears, the assets for the company are remarkable. “The new company is expected to have $55 billion in annual revenues and 3,500 outlets.” (Bull, 2004) The idea behind the merger was to integrate Sears into an atmosphere that is not only mall based. Therefore the merger has allowed for Sears stores to be opened in some of the old K-Mart buildings, which has allowed for Sears to begin making its presence known outside of the malls. “For Sears, the merger allows the company to move more quickly to where it believes its strongest base of customers are. “Off mall is where we need to move very aggressively,” said Lacy, who will become vice chairman and chief executive of
Kmart a long standing discount retailer and Sears have merged to make up Sears Holdings Corporation. As the two struggling retailers combine forces, it will allow for both companies, now working as one to reemerge bigger and better than ever. Now they are in the process of restructuring their management structure, to hopefully be able to locate where their areas of weakness are.
K-mart, one of the leaders in department stores, has been around for over 100 years. Although the company was plagued with financial difficulties, and filed a Chapter 11 bankruptcy, they have bounced back and are stronger than ever. “On May 6, 2003, Kmart and 37 of its U.S. subsidiaries and affiliates emerged from the Chapter 11 reorganization process – 15 months after they filed for Chapter 11 in the United States Bankruptcy Court for the Northern District of Illinois on January 22, 2002.” (Sears Holdings Corporation, 2008). Within a couple of years of pulling out of bankruptcy K-Mart purchased Sears and the two once separate companies became part of Sears Holdings Corporation. “The merger of Kmart and Sears as Sears Holdings Corporation closed on March 24, 2005, following affirmative shareholder votes of both companies.” (Sears Holdings Corporation, 2008).
As K-Mart pulled out of their bankruptcy and then acquired Sears, the assets for the company are remarkable. “The new company is expected to have $55 billion in annual revenues and 3,500 outlets.” (Bull, 2004) The idea behind the merger was to integrate Sears into an atmosphere that is not only mall based. Therefore the merger has allowed for Sears stores to be opened in some of the old K-Mart buildings, which has allowed for Sears to begin making its presence known outside of the malls. “For Sears, the merger allows the company to move more quickly to where it believes its strongest base of customers are. “Off mall is where we need to move very aggressively,” said Lacy, who will become vice chairman and chief executive of
References: Bull, G. (2004, November 17). Kmart to Acquire Sears in $11 Billion Deal-Stocks & Economy-MSNBC.com. Retrieved November 14, 2008, from MSNBC.com: http://www.msnbc.msn.com/id/6509683/ Garbato, D. (2004, November 18). Sears/Kmart Merger Complementary to Both Chains Company Activities & Management>Company Str. Retrieved Nemvember 15, 2008, from AllBusiness.com: http://www.allbusiness.com/retail-trade/4299223-1.html Sears Holdings Corporation. (2008, NA NA). Sears Holdings Corporation-About Sears Holdings. Retrieved November 14, 2008, from Sears Holdings Corporation: http://www.kmartcorp.com/about/kmart/history.htm Thompson Reuters. (2008, January 22). Sears Holdings to Introduce Revised Managment and Organizational Structure Reuters. Retrieved November 16, 2008, from Reuters.com: http://www.reuters.com/article/pressRelease/idUS190789+22-Jan-2008+PRN20080122