I saw somewhere on here that sears was going to file bankruptcy this month. Is there any truth to that? If so when can it be expected and what does it mean for the stores that are still open.
6 replies (most recent on top)
The loan just gives them more time to pay off debt (2020 i think) but the cash burn continues. They sold over three billion dollars of assets last year and still lost over one billion. They lost over half a billion in one quarter. All the loan will do is make vendors feel a little better about signing contracts for Christmas 2016, which they are doing now. IF the vendors decide they want cash and carry to ship goods Sears is done.
They still have strings they can pull to get cash to keep the wreck afloat, for awhile. Bankruptcy probably isn't going to happen this month. Maybe it won't happen this year. But with current management failure of the retail divisions is pretty much inevitable. The strategy is entirely based on the ridiculous "Shop Your Way" program, which supposedly would allow them to boost sales and profits from "members". It hasn't worked out that way, and SHC now has one of the lowest gross margins in the industry. Even Walmart makes more money per dollar of sales than SHC. The SHC retailers are no longer viable and upper management refuses to face the truth.
Employees should be preparing to move on. There is sure to be more pain in store for people who decide to stay on this sinking ship. Management has promised aggressive cost cutting this year, and employee pay is the biggest cost.
Even with the loan we don't stand to last much longer. Bankruptcy is inevitable. They talk about how much they have to sell in assets,yet nothing has sold. The auto centers have been for sale for years,and yet they still haven't been bought. There isn't even any talk of a company interested in them. I am kind of surprised Kenmore hasn't been sold yet,I won't be surprised if they are next. You can buy craftsmen tools at ace hardware, so I'm going to assume they have been sold,or maybe partially? They do own a lot of property, but then the store will more then likely just close down. Corporate keeps telling us that this is all to better the company....they actually think we are that stupid. I haven't left yet in hopes of a decent severance package when my store closes. Corporate will string this along until no more money is able to be made....and then throw in the towel.
They are just beating a dead horse.
Sorry, KuKu4CoCoPuffz, but they haven't secured anything. They have publicly stated that they are seeking a $750M loan in order to stay afloat. If nobody extends the loan, bankruptcy is a very real possibility.
No truth to that. They just secured a 750 million dollar loan which will keep them afloat