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This is actually very good news for those of us who own franchises!
Doesn’t effect our agreements at all and now their is stability finally. I hear we will be getting whirlpool back too!
A lot of the franchisees have been thinking about going independent and abandoning Sears in favor of Nationwide Appliance Plus or Brandsource for awhile. They guaranteed to have steady inventory, will be around in two years, and who trusts lying Eddie at this point? He demonstrated that he will screw over anyone and everyone given the slightest opportunity to line his own pockets.
Then it's toxic 4 3rd party purchaser. Higly unlikely new buyer would step in.
I think 60% of the merchandise comes from Transform according to what was on Seeking Alpha.
Does SHOS and moreover Outlet biz still have vendor agreement with SHC (Transform), If so, there is no chance 3rd party buyer would step in and purchase it!
Remember Sears really only went bankrupt because he played hardball with the board when he wanted to buy Kenmore for $400 million and they balked at his offer, so when they didn’t agree to it they filed bankruptcy, but I doubt he was out of money he’s made a fortune from the real estate that will probably never be divulged entirely. He played this whole thing out once before with Kmart already so he knew the bankruptcy process and took the gamble.
Eddie may not understand retail but he knows enough about money management and financial trickery to pull these things off.
If it weren’t for JC Penney’s massive debt load I wouldn’t have been at all surprised if he tried to acquire them, then he could strong arm these dying malls into reducing rent or close both stores.
It doesn’t take a genius to see where this is going, he’s going to buyout the owners or whatever is necessary then convert the Hometown stores to home and life. Then he will close full line stores that don’t shave cheap leases, aren’t owned or can’t be downsized.
Where does he get so much more from to splurge on these new stores and acquisitions?
I feel sorry the the individual entrepreneur that sank a life savings into this franchise. Now, poor Mom and Pop businesses will get financially ruined. My prayers go up for you. So sad..
He has a $130 million yacht.
He has the money to acquire stores, but can't afford to pay severences?
@ZnobxYE-whr There is no strategy here. At least not one that will save the company and people's jobs. More likely just to have Eddie pocket more real estate down the road. Hey, why not? They were foolish (or pigeon hold) to sell to him, that's their future.
Then why not just hire back people like me who were laid off, rather than bring fresh faces who have no clue about the sears business.
Great, another group of people whose lives Eddie can ruin even more than he a already has.
The only possible thing I can see is they are going to modernize as much as possible, try and refill the stores as much as possible, then advertising blitz during the holidays.
I don't know what is the strategy here. Millions being spent on hiring new people and modernizing the technology and opening new format stores. But what is being done to attract the customers and regain the lost good will?
Might as well put all the failures of this company on one roof.