CEO Elissa Robertson stated in a bankruptcy petition filed earlier this month in Delaware that Sears Hometown Stores Inc. has filed for Chapter 11 bankruptcy and intends to liquidate the inventory at its 121 stores.
The company’s closure plans include the shutdown of one local location. Sears Hometown Stores has an Auburn location at 415 Grass Valley Highway. Craig George, a manager at the Auburn facility, confirmed the closure. George stated that no official closing date has been set, but that it will take place until all inventory has been sold in a liquidation sale.
The bankruptcy filing states assets worth no more than $50 million and liabilities of at least $50 million.
Sears Hometown Stores are locally owned and run businesses that sell home appliances, lawn and garden furniture equipment, and tools. According to Chain Store Age, the retailer filed due to financial disagreements with its parent firm TransformCo, as well as a shortage of inventory.
Sears Hometown and Outlet Stores Inc. split from Sears Holdings Corp., the parent company of Sears and Kmart, in October 2012, and was renamed Transform Holdco LLC in 2019 when Transform bought its assets in a bankruptcy action. According to the most recent report, TransformCo CEO Eddie Lampert owns 37.75% of Sears Hometown.
The chain lost $16.2 million in operating and net losses during the fiscal year that ended on January 29, 2022.