Walk into a Sears today and the first thing you’ll notice is the silence. It’s heavy. Gone are the days of the "Merry奏" Christmas catalog and the hum of a hundred shoppers debating which Craftsman lawnmower to buy. If you’re asking yourself if did sears go out of business, the answer is a weird, complicated "sorta."
Technically? No. They’re still around.
But realistically? The Sears we grew up with—the titan of the 20th century—is basically a ghost.
As of early 2026, the physical footprint of the company has shrunk to a level that would have been unthinkable twenty years ago. We are talking about a handful of stores. Seriously. Just five full-line Sears locations remain in the entire United States. They’re hanging on by a thread in places like El Paso, Texas, and Braintree, Massachusetts.
The Slow Fade into Nothingness
It wasn’t a sudden explosion. Sears didn't pull a "Circuit City" and just vanish overnight. Instead, it’s been a painful, decades-long crawl toward the exit. Back in 2005, when hedge fund manager Eddie Lampert merged Sears with Kmart, the combined company had about 3,500 stores.
Now? You can count the survivors on one hand.
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The store in Coral Gables, Florida, which was a landmark for years, is basically being looked at for housing now. Developers want to tear it down and build a thousand apartments. That’s the story of Sears in 2026: it’s more valuable as real estate than as a place to buy jeans or a fridge.
Why is Sears still "open" then?
You’ve probably seen the headlines about the 2018 bankruptcy. That was the big one. Sears Holdings filed for Chapter 11, and most people assumed that was the end. But Lampert bought the assets back through a new company called Transformco.
Since then, the strategy has been... well, confusing to anyone who likes shopping.
Experts like Neil Saunders from GlobalData have been pretty blunt about it. There’s almost no way these five stores are making money. Most analysts think they’re being kept open for weird tax reasons, or because breaking the leases in these malls is more expensive than just keeping the lights on.
It’s a "liminal space" vibe. If you walk into the Concord, California location, you might find more empty floor space than actual merchandise. A former executive once described it as someone unlocking the door in the morning and locking it at night, even though there’s hardly anything left to sell.
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What about the brands we loved?
This is where the business side gets even more depressing for fans of the old school. Sears used to own everything. They were the king of the "hard lines."
- Craftsman: Sold to Stanley Black & Decker years ago. You can buy them at Lowe’s or Amazon now.
- DieHard: Sold to Advance Auto Parts.
- Kenmore: This one is still technically under the Sears/Transformco umbrella, but it's a shell of its former self. You can find Kenmore products on Amazon, but they aren't the dominant force they were when every American kitchen had a Sears badge on the stove.
The Real Reason Sears Failed
Honestly, it’s easy to blame Amazon. Everyone does. But the rot started way before Jeff Bezos sent his first book in the mail.
Sears stopped being "the everything store" because they stopped investing in their stores. While Walmart was perfecting the supply chain and Target was making "cheap-chic" a thing, Sears was selling off its best parts. They spun off Lands' End. They sold the real estate. They let the ceilings leak and the carpets get threadbare.
By the time they tried to get serious about the internet with their "Shop Your Way" rewards program, the ship hadn't just sailed—it had hit an iceberg.
Is there a future for Sears?
If you’re looking for a comeback story, you probably won't find it here. The company's own leadership has signaled a shift. Scott Carr, who handles real estate for Transformco, basically admitted a while back that they are moving from being a retailer to a real estate operating company.
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They aren't looking to open new department stores. They’re looking to see which parking lot can be turned into a luxury condo.
Did sears go out of business? Not officially. But for the average shopper, it might as well have. The website, Sears.com, still functions, but it’s mostly a marketplace for third-party sellers, similar to a much smaller, sadder version of eBay.
What you should do now
If you have a Sears gift card gathering dust in a drawer, use it. Today. Don't wait for "one last sale," because when these last five doors close, they likely won't open again.
If you're a fan of Kenmore or need parts for an old Sears appliance, your best bet is moving your loyalty to Sears Home Services. Interestingly, that’s one of the few parts of the business that actually still works. They still have a fleet of vans and technicians who can fix your dishwasher, even if the store where you bought it is now a vacant lot.
Check the status of your local "Hometown" stores too. Most of those independent franchises have shuttered, but a few local owners are still grinding it out. Just don't expect the 1990s mall experience. That version of America is officially out of stock.