Black Friday was a disaster, and the holiday season is looking worse. Toys R Us had access to over 3 billion in DIP financing, but ultimately all it is is a loan, and if the lenders aren't comfortable, they can close that line of credit at any time. The Unsecured Credit Committee is aggressively pushing for Chapter 7 because they see that that's the best way for Sears to pay them the money that they're owed, and if the judge determines that's the best way for them to get their money, because Sears will continue to further lose money paying lawyers and paying extortionate interest on massive amounts of debt, while failing to cover those amounts because of lack of profit, it's likely that Judge Drain will agree with them. What we're seeing here is the end game.
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The SA numbers do not include the home services/warranty business ebitda. A business which is among their most profitable. Incorporate those couple changes and you get a different picture.
Toys R Us didn't have Fast Eddie.
Seeking Alpha says that with just 500 stores (what Eddie wants) the SG&A expense (fixed expenses) will not be covered with this few stores. Sears has a huge distribution network, a large corporate campus and many other obligations. It's doubtful a 500 store chain is going to be profitable. The math does not compute. Sure, I would like to see Sears survive but I think the end game will be like Montgomery Wards.
@hhe. Good for you guys. If you are on the closing/liquidation list you will be putting up big numbers. When our Sears store closed this summer we were putting up amazing numbers for about 5 weeks straight. We were blowing everyone away and showing increases over last year of 175% to 250%. Then we ran out of merchandise and it was over. Oh well, it will all be over in a few months.
No returns after Dec 26th? Is that for real? Is your store on the go forward list?
Yes our store has been beating the daily goals as well as last years sales figures, and we are one of the stores on the closing list. Just goes to show you that the stores to stay open are not necessarily the profitable stores.
It’s very telling with no mention of sears or Kmart Pre Black Friday either on tv or print ads..
on thanksgiving our store did roll out 4 boxes of print ads.. guess that was the cheapest way to distribute them.. management made it real pretty in a table with red table cloth right at the entry doors in the tool Dept.
I think even the workers have given up, biding their time til the announcement of ch 7 which I also believe will come 12/15/18
Wonder if that’s why they took our last 2 vending machines out today.so now we can’t even buy a bottle of overpriced water or a snack inside the store!!!.
how depressing
business as usual though!🙄
@hhi no, they literally got into a bidding war right there in the courthouse. it wasn't because cyrus offered better terms
@jin Despite the fact Cyrus Capital's loan is 1.5 basis points lower, the other reason SHC went with Cyrus is because SHC wanted to select the the liquidator while Great American insisted on using their own liquidator.
It's interesting that Sears just switched their emergency lenders from a liquidation company to a company that's been betting on their bankruptcy for ages.
No returns on December 26. I believe December will be the last day. That is what Montgomery Wards did
It's inevitable. Did any store beat last year's sales figures? Be prepared. December 15th could be ugly.
Yes I think it's the best way, Sears needs to be put to rest sadly. We have Eddie to blame for everything