With all the creditors lining up for this hearing and so many others, who is going to give Eddie product to sell if he gets the ok to go forward. Workers will be leaving in droves. How is this Mr wonderful going to keep this old relic sailing? Its not going to happen. How?
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There's always another s---er... I think that is a position ESL will take with respect to suppliers; assuming his bid is confirmed at the end of upcoming hearings.
Some suppliers made their disdain of serving ESL evident in their objections. Stanley Toolworks
(SBD) made it clear they do not approve of working with ESL; but a single clause in their contract may force them to accept that condition. Stanley does not want "New Sears" awarded permission to manufacture inferior Craftsman products.
ESL stated most cures as being zero dollars and zero cents. After many negotiations with supplier claimants ESL derived some Cures not too far from the claimants figures; only to come back later with a stated cure; again of zero dollars and zero cents.
ESL is responsible for cures; and accepted that as a sale condition with an "uncapped" amount. Although ESL accepts the cures; and has set aside a fund (of some millions) to cover cures; a stipulation in their bid is that cures need not be paid until 60 days past the sale being confirmed. That must make suppliers and leasers uneasy.
ESL essentially purchased ALL contracts and leases; but at the same time made it clear they would choose which contracts and leases to honor; and at this time maintains most cures are $0; despite claimants often having claims in hundreds of thousands of dollars; or in millions of dollars.
So; for example; ESL and the Debtors may have confirmed a cure cost of $240,000 for Niagra Bottlers. Niagra may have sent back an objection that the actual cure is $250,000. To which ESL may have responded; no the cure is $0 (zero dollars).
But don't worry; ESL informs the court. ESL intends to decide which contracts to honor; and could simply walk away from Niagra as a supplier; leaving them with an unfurnished claim they must wipe from their books. Or.. he could decide to retain Niagra as a suppllier and work with them in a good faith basis to settle the cure; which for example; although ESL may agree the "Old Sears" debt is $250,000 ... could suggest they accept $50,000.. take it or leave it.
Some suppliers like Electrolux (Frigidaire...) have already accepted they are unlikely to receive a dime from the Sears bankruptcy.
In the end ESL can walk away from practically any supplier without paying a dim in cure costs; especially when the cure is not paid prior to the sale confirmation. Niagra is not the only company able to suppl bottled water. Electrolux is not the only firm that can supply vacuums.
“Bigger electronics section”?
Soooo..... two wire bins instead of one? Or are we adding a universal maybe? The only stuff left in most stores from 57 and 58 is mid-2000s DVDs of no-name movies and cartoons and some (still) overpriced accessories that have been clearanced VOM since the dept. was done away with in 2015. How that stuff has managed to survive the major cuts based on the NPI report and not been RTV’d in the meantime is an open question.
Eddie's plan will be approved. It has already been decided. There are already redistricting decisions made. Plans of going forward decided. Dms picked etc..Sears will live on. As for the other side, Kmart will all be deleted. It will be stripped of everything known as smart sense and it will be on the order of a dollar store. No electronics, sporting goods or hardware. Grocery will be limited to only pet food , chemicals and paper. Full time associates gone with only a Sm. Sears of course will fare better and remain the same with a bigger electronics section. It is a done deal.
The only ones not getting paid are smaller vendors, mostly in softlines. The sheer number of small clothing vendors who will be willing to work with almost anyone is astronomical, and Sears will be able to find someone who’ll sell to them on credit. None of the major hardlines vendors (Apex, LG, Samsung, GE, Whirlpool, MTD, Briggs, etc.) have filed objections. The new emphasis is going to be on hardlines, if for no reason other than that’s going to be most of the product flowing for the next 2-3 months before new softlines vendors can be found.
Yup that's a guarantee. They'll get paid. Wouldn't be in this mess now if he wouldn't of been so greedy.
Most of the major vendors are going to get paid via Eddie’s agreement, some don’t want the company to close. He’s got credit facilities lined up so they’ll get paid, they’ve got nothing to worry about.