The bankruptcy of Sears Holdings will lead to the closing of two of the three remaining Twin Cities Sears locations, one at Ridgedale Mall in Minnetonka and the other near the Capitol in St. Paul.
For decades the nation's largest retailer, Sears will enter the restructuring process with just one full-line department store in the Twin Cities, at the Mall of America, along with an appliance outlet in Coon Rapids.
"It's sad that Sears is in such difficulty," Teresa Fleischhacker of Minnetonka said at the Ridgedale store Monday. She said she has shopped at the location since it opened as one of the anchor tenants at Ridgedale in 1974.
"My mom ordered stuff out of the catalog, and Sears was one of my first credit cards. But the store just didn't stay in the race to keep up with the others," she said. "They stopped innovating 20 years ago."
Fourteen Sears Hometown stores in smaller cities around Minnesota are unlikely to close. Each is independently owned and chiefly sells non-apparel goods. Also remaining open are four Kmart stores in Minneapolis, St. Paul, International Falls and Rochester.
A leveraged buyout 10 years ago heaped billions of dollars in debt on Sears, creating a cumbersome obligation just as recession and internet-based retailing pulled customers out of its stores. Sales have fallen steadily since and CEO Eddie Lampert, whose hedge fund is the firm's largest investor, for years has closed hundreds of stores and sold assets to outrun looming debt payment deadlines, including one that arrived Monday.
In the Twin Cities over the past two years, Sears closed stores in Burnsville, Coon Rapids, Eden Prairie, Maplewood and West St. Paul. In Burnsville, Eden Prairie and Maplewood, Sears was the original developer of the mall its store anchored.
There was no word when the stores at Ridgedale and on Rice Street in St. Paul will close, employees said Monday.