Sears Hometown Stores Liquidating After Bankruptcy Filing
Liquidation sales are underway at all 115 Sears Hometown stores across 36 states and Puerto Rico—an opportunity for shoppers to find discounts up to 40 percent and more on name-brand home appliances, tools, lawn and garden items and other inventory worth approximately $40 million.
Hoffman Estates, Ill.-based Sears Authorized Hometown Stores, LLC, and affiliated debtor Sears Hometown, Inc., filed for Chapter 11 bankruptcy protection on December 12, 2022, in the U.S. Bankruptcy Court for the District of Delaware.
As a response, on December 20, 2022, Sears Authorized Hometown Stores, LLC and Sears Hometown Stores, Inc. filed suit against Transform KM LLC, Transform SR Acceptance LLC, Transform SR Holdings LLC and Transform SR LLC demanding $7.33 million declaratory judgment, recovery of money/property and other actions against the defendants.
Sears Hometown was spun off by Sears Holdings in 2012. By 2014, it was operating over 1,200 stores under the banners Sears Hometown Stores, Sears Home Appliance Showrooms, Sears Outlet Stores and Sears Appliance & Hardware Stores.
The company’s sales have fallen and costs have risen in recent years, according to court papers. Then, in October, Sears Hometown ran afoul of a debt covenant embedded in a credit line with PNC Bank NA, and part-owner and major supplier TransformCo began restricting the shipment of new inventory, according to an article by Bloomberg.
“Shoppers who acquire higher-ticket items such as riding lawn mowers or home appliances will still be able to protect those investments by purchasing an additional, third-party warranty,” said Billy Nichols, senior vice president and director of merchandising for B. Riley Retail Solutions, one of the firms managing the liquidation sales. “While the joint venture partners are managing the sales, local Sears Hometown dealers and associates will be on hand to provide advice and answer any questions consumers might have.”
Gift cards will continue to be honored during the store-closing sales, which will be conducted during regular business hours at all 115 stores.
The full list of stores closing is available here: https://www.searshometownstores.com/store-list.
