Sears filed chapter 11. Now what? 142 stores closing. How long until they announce more stores if they announce more stores?
Is chapter 7 still an option? Did Sears pay the banks what was owed?
I have already heard members at the store declining everything bc we filed bankruptcy.
"They said the plan is to evaluate 250 more stores after the holidays. "
Translation: 250 more store closures will be announced in January.
Chapter 7 coming. If they have 3-4 billion dollars in debt (could be more) and only 300 stores to bring in money, How much does each store need to make (profit not sales) to pay that debt off?
Remember, even with increased sales there is still a large company full of lawyers, buyers, IT, marketing, Advertising, AP/LP, environmental, HR etc. that needs to be paid and buildings to keep the lights on, pay taxes on, upkeep (ha, ha), unemployment to be paid, pension, repairs to be made, returns, customer service hotlines, SHI, lawsuits, DM's and regionals, health care. I could go on and on. But unless they cut 90% of the non sales related personel and departments along with closing stores and cutting hours they can never survive. Someone do the math on how much each store must make to pay off 3 billion.
90% of all businesses that file Chapter 11 bankruptcy will file Chapter 7.
Fast Eddie is putting together a stalking horse bid to maintain Sears as a going concern, but he'll have to compete with the liquidators. Given what happened with BONT and TRU, my money's on the liquidators. Creditors want to get paid and don't care if the patient dies.
Life happens, get another job. Remember this is the best, and biggest economy we've had in a 100 years. Jobs are everywhere.
Chapter 7 is always an option and more likely to happen. You don't see a very good track record of retail companies coming out of Chapter 11 better off. You more likely see them collapse into Chapter 7.
They said the plan is to evaluate 250 more stores after the holidays. There are 300 additional stores that they want to keep open regardless.