Cerritos Sears To Close Following Bankruptcy Announcement

CERRITOS, CA – The Sears store in the Cerritos Mall will be closing after Sears announced it filed for Chapter 11 bankruptcy early Monday, the same day a $134 million debt payment was due from the Hoffman Estates-based chain. Sears Holdings, the parent company of Sears and Kmart, made the filing in federal court in New York.

The struggling 125-year-old retailer has been forced to close hundreds of stores in recent months. The store said it will close another 142 unprofitable locations – including its Cerritos store – near the end of the year, in addition to 46 locations that were already set to close by the end of November.

The company is seeking a buyer for the majority of its remaining stores but said locations will remain open for the holiday shopping season. CEO Edward S. Lampert will also step down effective immediately, the company announced, but will remain chairman.

Mohsin Meghji, managing partner of M-III Partners, has been named Sears Holdings' chief restructuring officer, and an independent restructuring committee has been formed.

"Over the last several years, we have worked hard to transform our business and unlock the value of our assets," said Lampert said in a statement issued early Monday. "While we have made progress, the plan has yet to deliver the results we have desired, and addressing the Company's immediate liquidity needs has impacted our efforts to become a profitable and more competitive retailer.

Sears, which last year sold off its famous Craftsman brand, has about 700 remaining stores and 68,000 employees —down from the 1,000 stores and 89,000 workers it had in early 2018, according to CNN.

The Cerritos Sears location is at 100 Los Cerritos Mall Cerritos, CA 90703-5421.

Patch staffers Joe Vince and Shannon Antinori contributed to this post; Photo: A sign announcing the store will be closing hangs above a Sears store on August 24, 2017 in Chicago, Illinois. (Photo by Scott Olson/Getty Images)