There is no "go forward" plan they've been claiming all this time.....it is a joke and everyone left is being used to help liquidate the company.......like they give anything at all about any of their employees well being ...they don't....you can all rot in a ditch as far as they are concerned and they will make sure any hand out you get is not from them....basically if you still work for this company you better be able to live off unemployment at 80% your income.
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@11qdhxmu-rwt At this rate, if nothing else changes other than the continuation of the store closures and cuts made at HE and other parts of the company, there will be 50 jobs left by this time next year – just enough to run Sears.com and Kmart.com. Just enough people to run a skeleton crew of customer service, shipping and receiving, IT and management. Transformco will probably end up being nothing more than some small warehouse type building tucked away in some random industrial park, the only location left for anything bearing the name Sears or Kmart. All the stores, the DCs, call centers and the corporate campus in HE will probably be all gone and sold off by next year. So much for saving 45,000 jobs (remember that Sears Holdings started out with something like 300,000 jobs at the beginning, to put it all in perspective.)
That's only if Transformco doesn't go Chapter 7 between now and this time next year, which is quite probable too.
This show has been going on for 14 years and you're just now figuring the plot? No warning signs? No clues? Lolz.🤣🤣🤣
Its a new company with the same business model. The go forward plan is continued winding down to an asset light company. The media is still reporting 45k jobs saved. 1 year later, how many jobs are left? 20k?
I couldn’t help but notice that among Eddie’s last issues with the plan was whether or not money in the litigation fund would be used to pay out his secured priority claims if and when they are reclassified to actually be secured priority claims on appeal. I’m wondering how that all went? Would that have been money originally intended to fund the lawsuit against him? The irony!
You're just now figuring this out?
Eddie actually settled with most of the vendors back in February when the purchase agreement happened. The leftover vendors here decided NOT to settle and decided to go with the court system. Now they get pretty much zip.
60-90 day invoices are commonplace. Sure they can demand cash up front if they want but since the new company has credit lines it is really not necessary.
Eddie doesn’t care about being a creditor at this point, hence the credit bid. His credit he extended was converted to purchase the new company so he didn’t pay much out of pocket. His extended credit got converted to equity. And he got everything including Kenmore, Diehard, leases, stores, inventory etc. The main sticking points have been old sears tried to keep the credit card receipts the week of the transfer, a sears lease in Florida and Eddie tried to keep the cash that was in the stores that week because otherwise it would have disrupted day to day operations. The back and forth bickering has been about settling those.
Now of course Eddie is involved in both and doesn’t know retail but that’s another story. The people most screwed were employees laid off as stores closed and vendors and creditors who didn’t settle with Eddie back in February.
It may involve "Old Sears" but keep in mind that Eddie Lampert has financial and legal ties to the company, aka Asset Purchase Agreement and a creditor.
Also, Lampert's name is permanently attached to "Old Sears." He was CEO for the company for several years until he ran it into the ground with Chapter 11 filing.
You can't get rid of a bad reputation with Chapter 11 or 7.
Suppliers and vendors have long memories of who they do business, and will less likely do business with Lampert and his company, Transformco.
Think! If you were a vendor and was invited to do business with a company with a reputation of not paying suppliers and vendors, would you do business with them? You can demand cash upfront, but if this company refuses and only works with 60-90 day invoices, you take a great risk of not being paid.
You may argue that this case involves Old Sears and not New Sears. But these two companies have one thing in common-Eddie Lampert.
It is OLD sears that is liquidating not NEW sears. Old Sears has like $50 million left. This was almost guaranteed to happen since there was nothing left for Old Sears to reorganize.