Thread regarding Sears layoffs

The first steps that turned things in the wrong direction

Sears got it wrong when Alan Lacy sold off the very profitable Sears credit dept and outsourced it to a 3rd party. That allowed Eddie Lampert to buy the company and that started the dominoes to fall. Alan Lacy also over paid for Land's End and then when EL spun it off we only got approx. half of what we paid. So, Mr. Lacy started this whole thing, that's where I put the blame. Montgomery Wards made the same mistake and they ceased operations circa 2001 ...was it? Eddie at first was in it for real estate but then when retail started trending down, I think he tried to save the company but it was too late. We lost our profit engine (Credit) and didn't have enough capital to turn things around.

OP posted this on another thread as a reply @VDjKXB3-dyr

I tend to agree that these events that he mentions started the domino effect. Maybe it doesn’t matter anymore, but as long as we are looking for reasons how we got to this state, think that these are some important parts of the puzzle.

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Post ID: @OP+VFZF9t7

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It is absolutely correct. Credit was the profit engine that kept the company afloat during the 90s and up until 2003. Credit's profits covered the money losing operations, such as the stores, so well that it routinely made the overall company have over 1 Billion in annual profits, or more.

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Post ID: @yiq+VFZF9t7

You could be right

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Post ID: @yah+VFZF9t7

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