What were there on the last round, 12? Out of 72? Sears Holdings said there were 100 stores unprofitable out of about 800 and and that 72 we're closing and only 12? We're Kmart! That means Kmart is strong!! 350 strong discounters is possible. Why do people think Kmart has no future? Because they sell toys, snacks, toiletries, garden, clothing, tools, housewares? Do people not buy these things anymore? Everything Kmart sells is completely relevant and if they become a profitable chain then their past debt means nothing.
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@qiaThanks for pointing out another reason for Grant's closure. Obviously the situation you pointed out was company wide and would have a much larger overall impact where as my friend was involved with specific stores and personnel. My friend was responsible for sending a number of managers and employees to prison. What a double whammy.
@4ucs - That is not the reason I recall for Grants closing. This is the reason.
"The most apparent cause of the bankruptcy was the company's decision to extend store credit to all customers, with no attempt made to assess the customer's ability to repay. Each of the company's stores had credit managers who authorized the opening of store credit accounts, which resulted in many customers having credit accounts with more than one of the company's stores. In addition, there existed no centralized control or record-keeping of store credit accounts which resulted in noncollectable accounts. The credit was recovered in 1976 by Irwin Jacobs who, with the backing of Carl Pohlad, purchased their consumer accounts receivable account of $276.3 million for $44 million and 5% of first-year sales (The Wall Street Journal July 30, 1980).
This initiative to extend credit to all customers was made in 1969, during a prosperous period in US history, when Grant was expanding into new areas of the US. W. T. Grant hoped to attract customers from rival Kresge and other department stores. The low number of defaults on small loans at this time meant that the credit arrangements seemed a good idea, but the absence of any credit check, and the low minimum repayment terms were extreme, even for the times. When the economic expansion slowed in 1970/1971 the balance shifted and the credit arrangement became more of a liability than an asset. No decision was made to change or halt this before 1974, by which time the company's collapse was a certainty."
@TGjJgjp-3mfl Grants was closed and went out of business because of one of the biggest internal theft cases in the history of retail, not because of a failed reinvention. Management in some stores, but not all, was literally backing up semi's to the loading docks and loading up merchandise. A friend of mine was brought in to assist in busting the whole operation and to assist in prosecuting the thieves. A number of Grant's managers and employees in selected stores went to prison.
Grants had 359 stores left right at the end when they tried to "reinvent" itself (only to throw in the towel)
Kmart doesn't even have that many stores any longer...
O.P you keep thinking that and soon you will be like other people on this board who are "shocked" and "surprised" that their store closed. Go back and read the last shareholder speech by Eddie, and if you have time go back and read a few more of Eddies press releases.
There is a reason he says specific things like "transformation" and he says things like "asset light" these have to be said for legal reasons so that when SHC files BK someone cannot sue and say they did not know.
If you want to compare what SHC says and with other companies who filed BK like Circuit City, Radio Shack, Toys R Us etc. you will find the language is almost the same and they have the same corporate speak about "transformation" "asset light" "member centric" SHC is done. it is just a matter of when not if
Same company a**hole...
Kmart is Sears. Same company.
THIS IS THE SEARS BOARD.
KINDLY STFU.
THIS IS THE SEARS BOARD.
KINDLY STFU.
THIS IS THE SEARS BOARD.
KINDLY STFU.
THIS IS THE SEARS BOARD.
KINDLY STFU.
The only reason they closed 12 Kmarts this time around is because Kmarts usually make up majority of store closure announcements. Usually, they close a bunch of Kmarts and a handful of Sears.
They don't want it to look like they are shutting down the Kmart chain, which is what the media has been speculating (based on the number of Kmart stores they have chosen when making the closure announcements, they outnumbered Sears stores by a wide margin) so they threw some Sears stores into the mix. It so happens that the latest round of store closures are mostly Sears stores. It's a tactic to convince the media and the public that they are not trying to get rid of Kmart.
Whether they are trying to get rid of Kmart or not, Kmart is not strong. To be fair, neither is Sears. The evidence is all right in front of you!
Yes we do know eventually what's going to happen but coming in here to just post negative and stupid comments is so ignorant. These MORONS probably don't even work for the company. But thriving on someone else's downfall gives them a thrill.
Somebody sitting in their mom's basement can't resist getting people riled up. Listen, we all know the truth. Kmart and Sears are a lost cause. Nothing some goofball who just enjoys yanking multiple chains says can do anything about that. Time will tell all, don't waste your energy getting angry at that loser. Instead, if you still work there, prepare your exit strategy now. If you don't work there, does he even matter? Nope!
what is wrong with you? You act like $6 basic editions shorts will save the world. Let me give you a hint, they won't . They are $6 shorts. people buy them because they are $6 and it doesn't matter if they get messed up. Once K mart goes out of business people will go to Wal Mart and buy the $5 shorts . No one cares , stop preaching to the choir held at ransom by their draw. No one wants to hear your delusions .
Why are you arguing with us? You should be taking your message to Eddie, and making the case for spinning off Kmart, to cast off the dead wood that is Sears. Of course that means you will have to provide logistics, buying, contract management, and all of the other functions that exist outside of pure retail. But as you say, Kmart is strong. If Kmart stays tethered to sears its fortunes will be no better than the parent company that is hemmoraging cash every day. So time is wasting.
Kmart does sell all those things. the problem is that they only sell those thing and unless you want those things, places like Walmart, Target, Dollar store, etc, sell the same thing for cheaper prices and have more to offer. Who wants some off brand item for more than a name brand cheaper?
Who wants to wait in line for ever because Kmart/Sears has no cashiers working? Who want they hassle of SYW or a return policy that is constricting? Who wants to shop at a run down store with minimal lighting and AC or heating? Who wants to shop at a store will no toilet paper or soap? Who wants to shop at a store that may or may not be here in a few months or a year?
YoY sales are down every quarter for 26 or more quarters. Customers are leaving, people are quiting, benefits are reducing, hours are cut, stores are not maintained, merchandise is some off brand from Mexico, employees are fed up and discouraged. Yep, seems like a plan to me.
I'm running up there to buy some last minute bargains. Watermelon flavored water ,box springs, or a kids bike with a flat and NFL jerseys with last seasons players . So
Much choice !
Great theory, only past debt is not meaningless...it has to be paid back.
Lol!! Here come the negative MORONS. Just love to live for the doom and gloom.
Moron.
Kmart can survive, the future has not been written!
Get a life! The whole sears holdings---all stores are going down and closing and you'll be just like Sears Canada, a past memory.
You live in a bubble.