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Want to watch a large corporation die?

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seta-san    1,306
31 minutes ago, astropheed said:

You called it pretty well Seta, nice work. I can't say I care about Sears and haven't even seen one as far as I know since I moved away from Canada. I remember when I was very little it was a bit classy but as I aged it seemed more and more like a pseudo-pretentious Kmart. I see no reason to shop there. Although I don't really go to many physical stores anymore to be fair. 

it only took a month from that q2 report. i'm also a little jealous. you still have nice k-marts.

Edited by seta-san

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dead.cell    3,395

Not sure why the thread was rated with 1 star, but just wanted to say I enjoyed reading your contribution. Brick and mortar struggling to stay relevant today, I still find a lot of these big business moves interesting.

 

Mattress Firm was another store I had been watching, simply because they're EVERYWHERE here in Houston, but I never see anyone in them, nor any traffic going to their stores. I'm just confused as to how they've stayed up for so long, to the point that I started believing they were a front for the cartel, and that they were smuggling drugs via mattresses. :laugh:

 

They filed Chapter 11 as well, planning to close 700 stores, 200~ immediately leaving another 2,800 to account for, if you haven't seen it already...

https://www.forbes.com/sites/warrenshoulberg/2018/10/05/whats-next-for-mattress-firm-after-bankruptcy-and-putting-700-stores-to-sleep/#7ea6073b5328

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astropheed    1,972
46 minutes ago, seta-san said:

it only took a month from that q2 report. i'm also a little jealous. you still have nice k-marts.

In Australia? Yeah K-marts are pretty crazy here. Good deals, and the stuff is decent and useful. There aren't any wal-marts to destroy everything yet. 

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seta-san    1,306

Chapter 11 is official.

 

https://searsholdings.com/press-releases/pr/2116

 

  • 142 additional unprofitable stores will be closed by the end of the year
  • CEO Eddy Lampert steps down immediately but remains on the board
  •  Other Operations continue as normal
  •  Receive $300 million in funding to work it's way through the chapter 11 process
  •  A lot of additional directors are being added to work to help with the chapter 11 process

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seta-san    1,306

Updates:

 

-Sears stock his been delisted at 36c after 30 days of trading under a dollar.

-SHLD is no more and are now trading under -SHLDQ. The Q suffix is commonly used in bankrupt companies

-They need another $300 million as they have already burnt through $220million of the last loan they got last week. Eddie Lambert already promised the money but is now looking for someone else to go in half.

-Sears stock is going to go to $0. If they do emerge from chapter 11 then the companies debts will be transformed into new stocks leaving Eddie Lambert in charge since he owns the majority of the debt.

-Unpaid venders are suing for their stuff back.

-Malls are suing for Sears not to put up huge obnoxious signs declaring their liquidation sales as they depress other stores in the mall.

Edited by seta-san

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seta-san    1,306

I've been thinking about the situation that sears has been in for a while and I'm thinking that it will, inevitably, declare chapter 7. It literally has no positives.

 

The Sears brand has been ruined by their own mismanagement. The stores themselves are, at best, late 90s faux fancy. At worst they are run down shells of their former selves. They have lost most of their exclusive brands. They are being outcompeted by Walmart, Target, Amazon, Home Depot, and Lowes. 

 

K-mart is also a dead brand. There are no good looking Kmart's outside of the east coast.  They have been thoroughly outcompeted by Walmart, and target as big box stores.

 

Eddie Lampert is a problem. He doesn't know how to run retail stores. The fact that he's the largest lender is another problem. He wants to keep the stores open but because he's been CEO and the largest lender it's almost impossible to tell if he's been acting in Sears best interest or in the best interest of his personal company, ESL. I don't think any fair judge will can rule for him because of the obvious conflicts of interest.

 

The company should have gone into bankruptcy about 5 years ago before Eddie started to entrench himself and before he managed to sell off their best assets like Craftsman.

 

Sears has the stench of death on it. People like shopping in stores that don't look like they need your money. The value of their appliances and tools are much reduced since nobody can be guaranteed their lifetime guarantee will still exist in a few weeks.

 

They have been in a slow-mo liquidation for years now. Same store sales continue to decline. Stores that were a net positive last year are falling below that threshold.... and it keeps happening, month after month, quarter after quarter. This is a runaway situation that they will never get in front of. It will end in chapter 7 because there is zero long term prospects for the company. They could come out of chapter 11 but the truth is that the cycle of decline would just continue.

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seta-san    1,306

https://www.cnbc.com/2018/10/25/sears-future-in-doubt-as-eddie-lampert-looks-for-more-protections.html

I'm more certain than ever that Sears is going to close.

Today we're finding out that Eddie Lampert is demanding to change the terms of the $300 loan that they got last week and already spent so that the loan he's going to give is senior to that one. Just over a week ago the banks were demanding chapter 7. They've got to be over Eddie at this point. It's clear that's he's not fighting for a future for Sears but for his own interest.

 

SHLDQ is at 18c

Edited by seta-san

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