The Super K-Mart store by us is now closed . . . the Sear's Grand store is still open, as is the Sear's Outlet store across the street from where I work (and where we got our dishwasher).
Sears announced a restructuring this morning and shares jumped 40%. Perhaps they're not circling the drain after all.
I think they are. Radio Shack went through the same process...a few times.
Sears announced a restructuring this morning and shares jumped 40%. Perhaps they're not circling the drain after all.
Sounds like they made a smart business decision there. Leverage the sale to either give the company more Cash to burn through, or pay down debts/restructure etc. They may not be around in 15 years anyway lol.
Despite the $900 million sale of the Craftsman brand, Sears actually also borrowed money from its CEO Lambert. Basically to me, it's a slow liquidation of assets to go straight to Lambert to pay off its debt to him. Sears has been done for a long time. This is a controlled bankruptcy, with the primary debtor being Lambert himself.
There's a lesson there for knowing where you stand in the capital stack of a company. They have a responsibility to debt holders over shareholders.
Sears Has Finally Admitted That It's Almost Dead
The highlights:
Cash down from $1.7 Billion in 2009 to $286 Million at the end of 2016.
No cash flow from operations since 2006.
hey, it was announced our JCP is staying open!!
Sears closed, all the kmarts closed, macy's is in it's final 90% clearance. We've even started to lose some grocery stores. Not walmart of course LOL
It was probably one of the worst strategic decisions they could have made....as a company; they sold one of the few assets that had value. Now, it was a great decision for the CEO and his hedge fund company.
Not so much a lesson of knowing where you stand, but more like a lesson in agency problems, poor strategic management and very questionable ethical actions/decisions on the part of a CEO.
The CEO allowed Sears to borrow money from his hedge fund company (a red flag right off the bat) after doing some really boneheaded strategic decisions which made Sears too top-heavy and destroyed any synergies that were within the company and it's brands. Long and short, Lampert ensured that Sears would destroy itself (intentional or not) and made sure that he would indirectly benefit from it while screwing over the shareholders.
HHGregg will sport yellow signs soon.