Looks like Eddie is picking the bones clean!
https://www.marketwatch.com/story/sears-ceos-hedge-fund-offers-to-buy-kenmore-brand-for-400-million-2018-08-14
19 replies (most recent on top)
@UEUL5Se-1krr: The problem is, Eddie wants his ESL investments to own Kenmore at a price that is below the fair market price. To do this, he wants new shares of SHLD stock to be sold, so that he can buy it all up and dilute the ownership stake of everyone else. If some of the proceeds would go to PGBC, it would be such a miniscule amount that it would essentially "dry-up" over a short period of time. This is how Eddie can permanently rid himself of the retirement fund.
https://www.sec.gov/Archives/edgar/data/923727/000119312518248564/d609444dsc13da.htm
To my knowledge, Kenmore is still ring fenced by the PBGC so some of the proceeds would go to the pension?
Most of the income from the sale of Kenmore would go to pay of the creditors who hold the debt and the interest on the loans.
Oh, wait that person would be Eddie himself. So Eddie is giving money to buy an asset and then getting that money back in interest payments on the loans he has given
@UEUL5Se-1pqq Asking the real question here. Sears will probably not get the full amount right? I mean how much would Sears get out of this. The assets are running low not a lot left company is indeed going on its last legs as it seems.
Sell stock, he is the only one that is going to buy that sh--.
Even if Eddie were to purchase Kenmore for 400 million, would SHLD actually receive the full amount? Would the creditors and/or the pension plan be in line to receive a cut? Was the Kenmore brand utilized as collateral in any of these debt negotiations?
In a similar article: https://www.usatoday.com/story/money/2018/08/14/sears-eddie-lampert-esl-kenmore/992719002/
In one paragraph, Eddie is admitting Sears is running out of cash: "In Tuesday's letter, disclosed to the Securities and Exchange Commission in a public filing, Lampert also proposed that Sears sell stock to lower its debt and "alleviate its liquidity challenges."
Are there any other assets left over after Kenmore?
Consider that:
-Innovel is an entity separate from SHC (I think A&E/Home Service is as well).
-DieHard isn't as "big" as Kenmore or Craftsman, so it isn't going to bring in the big bucks.
-Just about all of the stores on prime real estate have been sold off long ago. There are a lot of stores sitting on real estate is owned by SHC, but is not as marketable (dead mall being a #1 issue).
So what is there left to sell in a feeble attempt to fund operations? My guess is nothing. Selling off a few stores here and there and a couple of DDCs/RRCs will not be sufficient to fund the operations, and even if it was, it's self defeating. This looks like the final round, and It's going as Eddie intended.
You guys have been posting for months that kenmore is worthless, lol. Eddie and ESL own most of the stock, they already own kenmore. What investors is he ripping off exactly?
Eddie will probably set Sears bankruptcy in motion while they still have the 400 million, and then recapture it as a first in line creditor.
$400 million won't even last a quarter....
The final shoe has dropped folks. Last one out of Hoffman Estates, please turn off the lights.
Wonder how quickly that $400m is going to go, thinking almost instantly since that $400m is not even going to heal the gaping wound that this company's debt has. Of course I'm sure Eddie knows this but it will make him look like a "hero" for trying to "save" the company.
Oh and I'm sure this is because Eddie is trying to save this poor company from the bottom of his big heart. It is not for because he's trying to gain ownership over the last few remaining assets that Sears has and will sell them off for his own profit! HEAVENS NO!!!
@UEUL5Se-1tez Yeah, I would say yes. :)
Isnt this like the employee that hides the the TV at full price and waits until it goes on clearance for 75% off before they buy it.
Welp, looks like this will probably be the final nail in the coffin then! Soon as he grabs these up he doesn't need the Sears/Kmart stores anymore. Get ready for the blood letting people!!!