With all the talk of corporate layoffs, does anyone have concrete evidence of store level layoffs? My store still hasn't posted the schedules, and we just had a budget cut.
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No layoff's but hours will be cut.
Eddie saved your job, but he's not going to spend anymore money on you or the store than he has in past. Sears will continue to bleed money, but at a slower pace, which to some will indicate a turn around. It will be business as usual under the guise of a new and improved Sears.... nothing will change.
Exactly, the stores basically have to operate under the DIP until Eddie takes control. Old Sears will wrap up and new Sears will take over. Old debt is mostly toast aside from what liabilities Eddie assumed. I’ve heard he lined up close to a billion in credit so some will go to staffing/operations, some will go to replenishing inventory. I’m sure without the budget constraining them they’ll be advertising to come see the new reinvented Sears at some point.
Since he bought the inventory for half it’s value expect some discounts to try and lure people back in.
The DIP was extended to SHC, not ESL. Whenever Transform Holdco takes possession that funding source ends. The bid has been accepted by SHC, but the Court has not signed off on it yet. (I see no reason the Judge wouldn’t) The sale is supposed to close and finalize on 2/1. After that, the remains of SHC will still have access to the DIP, but the new company will not. As for operating cash, who knows? I’ve heard that vendors are offering to ship on credit, but anything else is supposedly covered under a credit revolver that has been lined up in anticipation of the sale.
Associates have to fit inside the budget. That's all there is to it.
All we know is that the Debtor in Possession financing runs out on Feb 16th, and Eddie hasn't secured any financing beyond then. His bid has not been accepted yet, so there's no guaranteed anything as far as that's concerned. We're still headed straight towards liquidation until the money money magically falls from the sky that can counter years of billion dollar losses.