If the company does indeed go BK by mid July I be shocked, but honestly think they are going to try to make it after xmas we are half way their I am sure they will keep closing stores, but for it to go bankrupt I would say its early 2018.
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@1cht. It is just a shame that there is so much uncertainty. We arent privy to the plans the higher ups have at companies. Who knows what the future holds. Despite what anyone says about Kenmore, I still stand behind the fact that the brand is a good one as I use the appliances today and has some sort of value. What if a company you respect bought a smaller version of Sears with all its known issues for reasons you couldnt understand? Look at things that are done every day for reasons we dont understand.
@1mby. I get it as I have sat down with my manager and discussed what ifs and planned accordingly to the best of our knowledge. We all know there will be more layoffs until we get to the size Eddie envisions to either take us through bankruptcy, sell us, or whatever combination of things. I dont think anyone at corporate right now honestly thinks that last cut was the last one.
It just baffles my mind that anyone could still think SHLD is a viable company at any size. What are they going to be? A hardware store? Like all the Sears Hardware's that have closed? Another appliance retailer? Like Sun, Circuit City, Rex, HHGregg, etc, etc, etc? A clothing store like they think they are going to be in Canada? Who would shop there?
News of a layoff doesn't have to come from HR. If a BU needs to cut budget/payroll per orders from the top, the VPs get together to discuss who to cut and who to keep. They may ask some questions of the directors or managers about numbers or duties which unnecessarily hint that cuts are being considered. In my area, one of the analysts predicted what was going on the Friday before the recent layoff of 400. Basically, big cuts don't get made without involving a lot of people outside HR. Leaks can come from any of those sources, though the exact scale is harder to determine as you get further from the top.
Once again I don't see how this can be confirmed as in this instance I don't think HR would know. We all know it was HR who must have "leaked" the layoffs as who else would really know. I think someone just felt bad, and this was like his/her confessional.
I would say just go about your normal working and if you are really concerned, start looking for another job. That's all anyone can do.
Remember if we were to go through bankruptcy proceedings, it doesn't mean necessarily that everyone will be out of a job. We have no idea what the outcome will be. We could re organize too into a smaller company that could be okay.
zdr- You are correct to a point. Here's what I mean. So they announce bankruptcy in July. It takes a few months to liquidate and close down Hoffman etc., people are not layed off, they can work until the doors close so there is your 60 days. So they will not just close the stores and lock everyone out. This is how businesses get around the WARN act.
Also, they are closing stores that they rent from SRG and SHLD will pay a fee (One years rent I think) to SRG. It is a slick way to transfer the last bit of money from SHLD to SRG. But on the other hand is SRG has a right to recapture, which they did to raise cash for SHLD last year, then SRG has to pay SHLD.
The more you see SHLD closing and paying SRG you know the end is near.
And to all the people who work in corporate it will be business as usual. They need to keep it going until all ducks are in a row. You will plan, you will buy, to you it will seem as all is well. Then the announcement. See Circuit City as an example. As a corporation you do not want to scare employees, who will quit, or scare funds that own your stock, which would send the stock price plummeting.
@rcv Be nice. Someone asked if we had heard at HE, and we haven't.
@NVrVgpi-pjd ---- heck I could say the world will end next month ...
It is... It is... THE WORLD IS ENDING on AUGUST 21, 2017
https://www.thesun.co.uk/news/1728165/world-predicted-to-end-in-2017-thanks-to-a-total-solar-eclipse-hitting-america-and-the-uk/
its all around the internet -- help us
If they've retained BK counsel, then any number of people might know. That would be interesting to confirm.
"I work at Hoffman Estates, and we haven't heard anything like that"
You usually DON'T unless you have a seat at the table discussing such things ---- sheeesh
I'm the one who asked the question earlier. I think I get it now. If a bankruptcy truly is imminent, that decision will be made by Eddie himself and the board of directors. I doubt Eddie and company would be sharing that plan with anyone who works at corporate. And since the store closures are being determined by the upper echelons of corporate, it would be just another example of the left hand being unaware of the right.
I work at Hoffman Estates, and we haven't heard anything like that. We are planning out meetings, store visits, etc well into July and the fall months. We haven't heard anything like that.
I agree you cant come on here and just say this will happen ... who said this , where did the info come from???? .
heck I could say the world will end next month ... but we have seen the post that july 8th the property eddie bought will be un touchable by the courts once the bankruptcy happens
"what is the purpose of announcing store closures ahead of a bankruptcy? "
To give the illusion of business as usual
@NVrVgpi we need more to go on than a very vague post. Any particular source or insight there? Do you work at Hoffman and heard something? If so, I get that you can't report who said it, but please confirm one way or the other.
Sears Canada is already bankrupt.
Sears Canada or sears USA ?
to NVrVgpi-gis - you are only half correct. Assuming Sears opted out of their leases early, then yes, Sears has to pay Seritage a fee. But Seritage also has a recapture right that if triggered, is a cash transfer from Seritage to Sears.
Why announce the store closings?
There's a pesky little detail called the WARN act.
Large employers are required to make the announcement rather than just padlock the place without warning, and give the employee 60 days notice.
@dcp, I can answer on the closures matter. Those were SRG own stores, and SHLD pays a years rent to them for closing early. If they close after BK filing, this part of the contract is difficult to collect on, and cash can't be as easily transferred to SRG, which has tighter cash flow structures in place.
It's a shell game of cash, transfer some of the little cash left in the dying SHLD to SRG to help ease the transition of SRG away from a SHLD tenant base. As SRG leases to more non-SHLD entities it will become more profitable and stable, but it will have to absorb the shock of SHLD BK first, and this will help ease it.
Two moneymakers near here announced their closings yesterday . Leaves one profitable store within 150 miles .
All the others of a huge group are gone .
Honest question for those who are convinced a July bankruptcy is imminent: what is the purpose of announcing store closures ahead of a bankruptcy? What's the point of announcing store closures now if bankruptcy is happening in a month?
Not that I wouldn't be surprised, but I'd like a little more than that, OP, to establish credibility.