Many companies have emerged from bankruptcy and continued with financial success. For the past 20 years, General Motors, Chrysler and most of the country's largest airlines have used the bankruptcy process to transform their operations and report record profits.
The new Sears will only have a fraction of the debt burden that the old company fought for. Most of the 425 stores that are part of the sale were profitable right up to bankruptcy. The other stores produced staggering losses.
The company said in the bankruptcy court expects to raise at least $ 650 million from the sale of real estate for the next three years.
The company also expects to make some business strategic changes. It will place greater emphasis on its "Shop Your Way" customer loyalty program, which allows its customers to accumulate points. Customers can use these points at restaurants, merchants, and other retailers. Sears claims the program increased sales last year.
Sears also intends to switch to smaller stores – about 12,500 square feet each, instead of the 160,000 square feet of a typical store anchoring a shopping mall. It is not clear whether the company will reduce existing locations or move into smaller spaces.
This is another way to reduce costs: Fewer stores and more small stores mean less inventory, so Sears can fill stores with desirable products. One of the most important customer customers that Sears lacked.
Why Sears might still fail
 Sears & # 39; problems go back for decades and they are not washed away with a healthier balance and a smaller footprint of stores. ” class=”media__image” src=”http://cdn.cnn.com/cnnnext/dam/assets/181206104751-01-lampert-sears-file-large-169.jpg”/>