
For years, there have been reports of Sears death spiraling toward the corporate graveyard alongside other popular brick-and-mortar retailers.
The company, once one of the great brands of America, has managed to stay afloat in recent years by borrowing cash from its CEO and selling off desirable assets such as real-estate and brands.
Now, Sears filed for Chapter 11 bankruptcy protection early Monday morning. But just because Sears Holdings Corp is in trouble doesn't mean consumers have to be.
In the wake of all that's happening, here's what Sears shoppers should know:
More: Sears files for Chapter 11 bankruptcy protection, to close 142 more stores
Question: Will my local store close?
Answer: Possibly.
Before filing for bankruptcy on Monday morning, Sears had announced that 46 of its underperforming stores are closing in November. The plan involves shutting down 13 Kmart locations and 33 Sears stores in several states. Now, with the filing, the company says it will close another 142 unprofitable stores.
And don't forget Kmart. Sears Holdings owns Kmart. You'll need to check to see if your local stores are affected.
Sears reminds that its "online channels are open and ready" as an options as well.
Q: Can I still use my gift card?
A: Yes. "We are accepting gift cards. Please come to our stores or shop online to use them," the company says in its online Q&A.
Experts typically suggest that you take gift cards out of your wallet and drawers and put them to use ASAP.
"In general, people shouldn’t hold on to gift cards," said Katherine Hutt, director of communications for the Council of Better Business Bureaus. "They should go and spend them as soon as they can, regardless of the status of the company."
Q: What's the best time to shop for deep discounts?
A: Now – maybe.
"When retailers close stores, they are likely to have some sales. You have to be careful though. Yes, some items are going to be deeply discounted, but it is also likely they will be marked 'no return,' " Hutt said. Because, at some point, there may not be a store to return it to.
For now, Sears says, "Merchandise pricing will not be affected."
Q: I purchased an extended warranty. Will Sears still honor it?
A: "We are currently honoring our warranties, protection agreements and guarantees as normal," Sears says.
However, notice the wording – "currently." When Sears closed down its Canada stores last year, the retailer stopped honoring extended warranties. Refunds on protection agreements were only allowed if purchased within 30 days of the company's liquidation announcement.
Things would be worse regarding warranties if this were a Chapter 7 liquidation, says Edgar Dworsky, a former Massachusetts Assistant Attorney General in consumer protection and the founder of ConsumerWorld.org. In that case Sears would be disappearing. But with a Chapter 11 filing, "the plans at the moment, Sears as a company is hopefully going to emerge from bankruptcy. For sure smaller, but (it will) still be there."
"Don't panic," advises Dworsky. "Wait to see what announcements come out from Sears of how they're planning to handle it. Sometimes, they will use an outside company" to provide the extended warranties, which is what ended up happening in Canada. Other companies stepped in to honor the agreements and perform repairs at no cost to customers.
And if the company or companies are independent third-parties, "it's not an issue" since those companies are presumably going to still be around to honor the agreement.
Q: Will my appliances still be serviced by Sears Homes Service technicians?
A: Sears says yes, the "Sears Home Services is operating as usual."
Q. I just bought an appliance from Sears. Should I return it?
A: "They probably won't take back a major appliance," advises Dworsky, but what you can try and do is cancel the extended warranty from Sears if you had just purchased it.
A number of credit cards now include extended warranties as part of their perks, so depending on the card you used to pay you may be covered there. You also can purchase warranties from outside companies such as SquareTrade.
Q. If I have a product purchased from Sears should I get even small things fixed now?
A: "I would not delay if you need any repair," says Dworsky. "Delay is kind of the consumer's worst enemy at the moment because we don't know what tomorrow is going to bring for the company."
Q: Will the return policy change?
A: It shouldn't change immediately, according to the BBB. And, according to Sears, exchanges, returns and cancellations can be made "in line with our usual terms."
Q: What about layaway?
A: The company says, "leasing and layaway continue as normal."
However, Hutt suggested that "If you have anything on layaway, you should go get it and pay it off. If you were planning to buy anything to match something you already have, you should get that as quickly as possible."
Q: What about my Sears credit cards and all of my rewards points?
A: "Your cards should work as they normal do," says Sears in its online Q&A.
Q: And will I still be able to get Cashback or Sears Your Way points and discounts?
A: The company says it has "sought authority to continue these programs." So stay tuned for the answer.
Q: Will Sears Auto Center remain open? Will the warranties on my car repair be honored?
A: Generally, yes. "Sears Auto Centers remain open. We have announced the closure of certain locations. A full list of these locations will be available on the "News/Media" section of searsholdings.com. We are currently honoring our warranties, protection agreements and guarantees as normal."
Q: How do I leave a complaint?
A: Sears has been a BBB-accredited business since 1966, so the company is required to handle complaints up until it files for bankruptcy. "Closing a business doesn't relieve the owner of that responsibility," according to the BBB website.
If you would like more information, contact your local Better Business Bureau.
Follow Dalvin Brown on Twitter: @dalvin_brown
Bagikan Berita Ini
0 Response to "Sears is in trouble: What shoppers should do now with the bankruptcy filing"
Post a Comment