'Things Happen': Larry Kudlow Shrugs Off Threat of Sears Bankruptcy
*By Jim Roberts*
One of the nation’s oldest and most iconic retailers, Sears, is on the brink of bankruptcy, and President Trump’s chief economic adviser, Larry Kudlow, has two words: “Things happen.”
In a brief interview Q&A Friday with Cheddar’s J.D. Durkin on the White House lawn, Kudlow seemed to shrug at the company’s dire financial straits, suggesting that it was the natural course of business evolution.
“Sears has been in trouble for a while,” he said. “Things happen; they change. New companies come in and take out the older companies.”
He then went on to cite the work of 20th century economist, Joseph Schumpeter, who developed the theory known as “gales of creative destruction.” In Schumpeter's vision, entrepreneurial innovation was a disruptive force that [sustained economic growth](https://en.wikipedia.org/wiki/Creative_destruction), even though it led to the collapse of established companies.
Kudlow joked in the interview, “I commune with him,” referring to the economist who died in 1950. “In fact, I spoke with him just a couple of weeks ago to make sure that we were doing it right. And he heartily approves.”
When Kudlow was first asked about Sears, he said he preferred to focus on the macro-economy. “Consumer spending and retails sales are doing terrific,” he said. “Business investments are doing terrific. Wages, real disposable income, fatter paychecks, doing just terrific. That’s the stuff that I want to focus on.”
The company, which owns the Sears and Kmart brands, faces a Monday deadline to pay back [$134 million](https://www.cnn.com/2018/10/12/business/sears-bankruptcy/index.html) in debt. In the last five days, the company’s stock has fallen 50 percent to 35 cents a share.
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
