Fast eddie will throw thousands of peeps out of work before throwing in the towel and doing a Ch. 11 reorg
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When chains like Circuit City and Montgomery Ward went Chapter 7, that didn't send the economy into a tailspin
I don't think it's for Eddie to decide that he can do a Chapter 11. Ultimately, it's the courts' final decision. They can disapprove it and make him do a Chapter 7 instead. I think that's what happened to Sears Canada because they could not demonstrate their ability to maintain financial solvency over a long term to do a Chapter 11.
@paa - Do you really believe that SHC is able "to stem a major recession or hold it off as long as possible" simply by staying around? Really? Let's consider the parameters: as of late 2017, SHC employed about 140,000 people. The US Bureau of Labor Statistics (BLS) estimated the size of the US workforce as 157,833,000. Do the math. SHC is hardly the linchpin of the American economy.
Companies file Chapter 7 BKC when they want to pull the plug entirely. Chapter 11 allows an entity to reorganize with the intent of emerging, generally as a smaller and profitable company. Filing Chapter 11 would not immediately throw over a hundred thousand people out of work, nor would it cause the economy to crash.
But everyone needs something to believe in, I guess.....
Put away the tin foil hat and don't worry about the aliens coming for you. Everything will be O.K.
Not ego, it's a big coverup going on across all industries and corporations. Hiding layoffs, continuing in business way longer than a sane person would to prop up the "Everything is awesome!" narrative.
Eddie is a money man, and knows the investing business well. So why would a guy like that buy a dead dinosaur called Sears? Yes, not just him, Hedge funds everywhere have bought dead retailers to hold them up as long as possible. It's sure not a good business decision with all the losses.
But when your real goal is to stem a major recession or hold it off as long as possible, that's what you do. And all corporations, Govt, and media are working together, as they always do, towards this end.