Chapter 11 is a tool used by companies like ours to protect the value of their businesses and operate as usual while they work to fix their business and address their liabilities.
It is an orderly, proven process.
Many prominent companies and brands have gone through this process and emerged stronger than ever.
Now you understand why they brought in the Toys R Us guy to be a VP. It will end in chapter 7 once Eddie buys what he wants at the price he wants.
Or maybe Eddie posted, he talked about frequenting thelayoff dot com
I did some research about bankruptcy on nolo.com and the facts are that only about 10 to 15 percent of companies continue successfully after chapter 11. So, there is an 85 to 90 percent chance that Sears will shut down for good. It also said that the Chapter 11 process is expensive and a long and drawn out process. Sears has to file, on a monthly basis, paperwork that shows their progress towards re-organization. If the bankruptcy court feels that progress is not being made then things slip into chapter 7. Many companies avoid the 11 process and just throw in the towel to 7 to avoid the extra costs. I also called my insurance/financial agent who is familiar with the BK process and the Sears situation and he thinks this will play out into part of 2019. His office is expecting many calls for ex-Sears associates calling for health insurance .... for now Cobra will be available until 7 filed. PBGC not touching the pension for now... we are not that far along yet in the process. The bottom line is that current and former employees have been given a temporary reprieve, but it's not going to last forever so we should all be making other plans for future employment and/or health insurance starting early next year.
@VEhSxIZ-tkd Only one that comes to mind is Payless. Course, they still have about 3500 locations and they had to close about 900 stores, which is over 200 that Sears and Kmart have left. Not to mention their debt ($435 Million) was FAR less than Sears/Kmart which we know is in the billions.
As someone else that commented, about 90% of the time a Chapter 11 WILL in fact only lead to a Chapter 7 and completely liquidation. Sears for sure is heading down that path.
This was one of my favorite parts too. I don't mind the repost.
Can anyone think of any companies that came out of CH 11 as he says. The companies that come to my mind have all closed.
Yes, look how well Toys R Us and The Bon Ton are doing nowadays after chapter 11.
Someone knows how to copy and paste.
Yes, it's an unnecessary repost of part of Eddie's letter.
https://www.thelayoff.com/t/VE9I07U
Sounds like EL