The frequency at which we have been getting news on closing stores in the past several months makes me think that there will be no need for Chapter 11.
Sears will simply continue to close its stores one by one with little pomp until there are no stores left to close and the entire company is its web-page.
So there is really no reason to worry about bankruptcy...
You can't downsize your way to profitability. The only way to avoid bankruptcy is to increase income. Unless SHC can come up with a plan to power up sales, the company can't survive.
That's not to say that it might not continue to be a long, slow death march.....
Simon is looking to make a movw on a large fraction of real estate. It is in the works as I type.
Eddie's 13 year chess game is almost over. His next move is checkmate!
@T4jVQiA-lve This pretty much sums it up exactly the point at this point the debt is insanely high. I would also maybe believe it if the website was so bad, but obviously its horrible so I don't think that is the master overall plan BK as mentioned is still something to be noted.
ESL has been closing double digit % of stores, and same store comps are -15 or so. So every year top line is dropping by at least a quarter. But the debt isn't. That amount of debt will get increasingly difficult to service on the lowered top line. BK is still in the cards.
On here and elsewhere, I see Eddie getting credit for having a plan but I have often wondered, Does he? Is it simply, trying this or that and hoping for good financial results?
We have been in a systematic liquidation of stores and assets the last few years to keep the company afloat. It will continue.
I've considered this before. This is a possibility.....not sure what the master plan is at this point. If the remaining assets are closed out, spun off or sold off at the proper increments then it is possible that there could be a point in time that the debt load could be nearly eliminated or at least manageable to a point. I've thought all along that the way things were happening makes it seem like a controlled cash landing of sorts......
If this is the case this would be one of the strangest and definitely most lengthy leveraged buyout/sell off situations in history.