See that a lot of people are in a good mood due to the probable outcome that Eddie's bid will be approved. Think that there is little cause for celebration. The only one that benefits from this situation is Eddie himself. My take is that this just prolongs the liquidation and creates the possibility of happening in a gradual manner, closing a few stores at a time. Other then tom possibility to earn a few extra paychecks before the ultimate end, and the possibility of seeking a new job while still employed there is little benefit for the workers from this.
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Lacy will hopefully have to explain to the SEC why he left Sears for Dave and Buster’s, then turned around and got sweetheart deals from Eddie/Seritage. This goes way deeper than just Eddie.
As for the company, it’ll survive in it’s current form long enough to use the tax writeoffs and not a second longer. Exactly how long that is depends on how well Eddie’s hedge fund performs. The end game is total liquidation, but the IRS says to company incurring the losses must still exist in order to use them.
Lacy and Lampert both made bad decisions, as did even earlier predecessors. Sears has been compounding bad decisions on top of bad decisions for decades.
So it takes about 15 years to clean that up? With great respect, I call BS
Does Lacy get a free pass for setting up a meaningful new culture (mission/vision/values) in 2003 and then turning around and selling off to KMart in 2004? Embarking on brick and mortar binges like Sears Grand when he should have been investing in e-commerce? I mean come on people. It’s not all Eddie’s fault.
Paying the lawyers, fat exec bonuses, key employee retention bonus, million dollar salaries for the CEO office, not updating the stores, spinning off the valuable brands, broken down stores, laying of essential staff. We know where the money is going. None of us here are id--ts.
Massive layoffs at San Fransisco HQ
"I see this as finally cleaning up Lacy’s mess. Time for a fresh start for Sears. Americans love a comeback story. Sears has some very unique integrated assets that make it second to none."
What assets? More like you are talking out of your "a--".
"there is no way of knowing how much of the operating losses were attributed to the huge interest payments they were paying on their debt until they attempt to operate without it"
Interest expenses should all be broken out in the SHLD quarterly/annual SEC filings.
I see this as finally cleaning up Lacy’s mess. Time for a fresh start for Sears. Americans love a comeback story. Sears has some very unique integrated assets that make it second to none.
It’s impossible to tell really because there is no way of knowing how much of the operating losses were attributed to the huge interest payments they were paying on their debt until they attempt to operate without it.
Eddie must know people or have numbers we don’t know about because the banks were pretty quick to give lines of credit to make this happen.
I suppose the best way to look at it is opposed to being tossed out in exactly 3 months or so there is probably more time to prepare. If Eddie knew something no one else knew and it’s somehow profitable without the debt interest payments then you can rejoice.