Bankruptcy for Sears and K-Mart?

Former American retail giants now relics of bygone era

David Blake
October 10, 2018 - 5:57 pm

At one time the largest retailer in America now appears to be going down in bankruptcy.  

Sears Holdings, the parent company of Sears and K-Mart, faces an October 15 deadline to pay $134 million on its debt.  The signs point to the fact that the end is near.

New Orleans Real Estate analyst Wade Ragas says it's becoming a familiar story.

''They are facing stiff competition from the Internet and you also have Walmart jumping in to the Internet and every other retailer, so there's going to be a restructuring of American retail,'' Ragas said.

What might happen to stores across the New Orleans area?

''Sears has lots of space in shopping centers that are in distress, so Sears is facing some of the same problems as stores that were in major malls,'' said Ragas.

But Ragas says the store locations are sitting on valuable property and he says for example the K-Mart on Veterans and Causeway is just one example, he thinks it could become a hotel site or even two small hotels with investors who have patience.

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