I was certain we'll be closed before this week started, and now it looks we'll make it into the new year. Is it stupid to be optimistic over this?
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It's fallen off the cliff, but it hasn't hit the ground just yet. Only a matter of time.
The pressure is on Judge Drain from politicians as well as the media to just shut it down and ask for an investigation into SHC. The SEC is already looking into Eddie and his dealings. The end is near and the lawyers and law are closing in. Just wait for the news within a week or two about some prison time for the execs and the under the table deals of SHC. Vendors are already taking their claims to higher courts and urging the government to take a closer look at SHC. Look for a change to the BK laws from all of this as well a massive fines and prison time for some execs.
It is surprising. They've received multiple loans without which they would not have survived. The judge is known to be an especially lenient one. There are many many judges who would have simply asked by now, why are you in Ch 11 and not Ch 7 straight up, because a $950M loss in just 13 weeks is impossible to justify when destroying what's left of the bankruptcy estate. Now they've lost money even during the holiday season as a retailer. When the creditors said just look at Eddie's record with Sears the whole time since he bought it, isn't that good enough? Judge Drain could have just said, sounds good to me, Ch 7 it is.
@ecx they may have grossed a few billion, but they still managed to be cash flow negative to the tune of a few hundred million, which takes a great deal of talent during the holiday season, considering it was the best holiday season in more than half a decade for malls. Instead of building up a cash reserve, they burned through all their loans and then some. Just imagine how it would go for the rest of the year for the hypothetical go forward stores.
The judge approved another loan, so at least the courts and lawyers will get paid for a few more weeks.
Yes
TAke the rose colored glasses off and face reality. Sears and Kmart are done! Kapoot
Yes.