I don't believe Bankruptcy is going to happen for SHLD - rather an accelerated liquidation of all properties of value with the goal to have it done by mid 2018. The remaining Sears stores will all be turned into an enhanced version of the Hometown Stores with Appliances, etc. - Softlines will be toast. K-Mart will likely take their 300-400 locations that have minimal/no competition and turn them into a Dollar General type of format - perhaps even acquired by them. Thoughts?
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Sears doesn't have any reporting tools. They just use bean counters and an old abacus.
Actually, from my experience most appliances and hardware can only be bought at sears, with the exception of the very low end stuff. Sure, online you can get it but they're probably pulling from the same warehouses anyway, but I've never seen anything other than super cheap appliances etc actually in the stores on display.
I haven't been to every store in America though so I don't know if there are exceptions.
Why do people assume that Sears will Out survive Kmart, dollar per dollar Kmart is more profitable and has higher foot traffic. What you can purchase at Sears you can Purchase at Kmart, but you can't always Purchase Kmart goods at Sears. Store reporting tools such as EIS, HM, PIG and PIL are designed specifically for the Kmart Format.
Guys if Eddie were serious about the retail side of the operation he would be issuing more shares of Sears stock and buying that. He isn't. He is after the real estate. He sold 235 of the best properties to Seritage for $2.7 billion right? Then used more stores for collateral to back a $750 million loan. Of which he went out and bought up a ton of those bonds. Then did the same thing with more stores for a $500 million loan. Then again last fall another $300 million secured by yet again MORE stores. And that $300 million could be expanded to $500 million but once again by pledging more stores. Sears has $4.2 billion in debt and Eddie owns a lot of that debt. So when Sears does fall apart he will have collected all the interest on those loans and bonds at an 8% rate. Then bankruptcy courts pay vendors and creditors first with the sales of what assets are left. So what money they can get for selling whats left he will get. Talk about ringing out every single dime from a company. And of course common shareholders of ticker SHLD will get nothing what so ever!
you guys are so clueless. all you do is speculate.
They don't have the ability to pay all the debt due and interest. The hole is too big to fill without Bankruptcy . I do not see what Hometown's would offer that is different than Best Buy Lowe's or Home Depot offer. SHLD has screwed so many people on repairs and service I see no reason people will continue to do business with them. Their falling numbers in hardlines demonstrates that view. Sears now #4 in Appliances . Was #1 in the past by a mile
Just my perspective I can see them shutting down the whole Kmart operations. Keeping approximately 200-250 sears stores open. At the end of the day who really knows what the end goal is except for one person. They lose money for everything.
This actually makes sense and I've read similar theories before
They lose money across the board though. That's essentially re-arranging deck chairs on the titanic. Eddie had a decade to come up with a real plan and he failed. It's time for him to own up to his failures.