Thread regarding Sears layoffs

At this point it is a wait and see approach.

SYW is being built into a rewards program kinda like plenti points. There's hundreds of partner brands and stores. Maybe this is to increase the value of a unit that can be sold off later during bk? Btw I don't see the company liquidating entirely. They may go into bk and then sell off assets to stalking horse bidders that would keep the best stores operating.

I thought so. I know the POS systems are still Sears software. I honestly feel sorry for the owners of the "Sears Hometown" stores I hope if SHOS/SHC goes belly up. They can buy the inventory dirt cheap and after they dump the Sears stuff convert their store to an Ace or True Value hardware.

Personally the Sears hometown store owners are getting screwed like the employees and I feel sorry for them.

I think SHOS will go under too. They are still very much intertwined with the SHC business network (even with its perpetual decline). Most of their products and operations are dependent upon SHC systems, products, vendors, and customers so I think they wiuld quickly fail. We learned this week they still share pos systems, and the two headquarters are in the same building. SHOS probably doesn't have the money or resources to seperate itself from SHC since it is rather weak too.

Does that make sense?

I am wondering about this? If SHC shuts down Kmart/Sears physical stores and Kmart/Sears.com

Sells the data center in Troy to SHOS and let SHOS deal with the data center issue?

If SYW is really good, since the call center is already at LandsEnd. Intergraded it into LandsEnd and make SYW a division of LandsEnd.

SYW can continue to serve SHOS stores and LandsEnd stores and SYWR.com?

Then SHC can file for chapter 7?

Lands' End was never integrated into Sears Holdings IT structure. They continue to run their own systems today. The SYW call center, located at Lands' End HQ, uses what can be described as a web-based portal for member lookups.

SHOS really should have been put on their own POS and inventory system by now. ANYONE know why it hasn't been done?

As too the properties and KCD, the value of the properties is around 4 billion or less KCD is worth what someone will pay for it and no one is interested. SHLD filed a order with SEC to keep the worth of the properties private as they were all evaluated during the ring fencing. Why would they want to keep the value of that asset private ? As to them being ring fenced they are that way because of pension shortfall debt and first term loans , while they dont go to bankruptcy they will then be the property of the the pension fund and who ever holds the debt. Sears will not keep them. Sears also has a first term loan secured by the inventory.

As to the REIT , the REIT is in the business of leasing out square footage that's how they profit. Sears currently leases from the REIT at 30% of realized square foot cost as part of the sales contract. If Sears is longer there they can make 70% more on those properties... what do you think the REIT needs to happen ? Think of it this way SHLD has not made one single nickel in years, despite selling lands end , home town a bunch of property. They loose at a rate of 5 million dollars a day on average every day 365 days a week and have done so since 2012. So if you loose 5 million a day, you have sold off most of your assets and the majority of what is left is locked as collateral your stock was $120 a share but now less than $17 what do really think is going to happen. Smaller stores ?

I could see possibly see splitting apart a 150,000sq foot Sears store that they own and have on one level a Kmart and another level a Sears.

Kmart maybe might be able to be like a dollar general on steroids with the bare basics including a pharmacy.

Sears could be reconfigured more like a Kohls but with more hardlines?

Would this idea even work? You could target the Low Income customer with Kmart. The Sears with middle/middle-upper income people.

Sears and Kmart will continue to exist after another bankruptcy but with a smaller store count and, for many Sears and Kmarts, smaller store format. Sears Hometown and Outlets will probably grow, as unbelievable as that may seem, to fill in areas where Sears stores go out. Regarding the crappy Kmart leases, some of them are such sweet deals that the company would never prematurely exit the lease.

That makes perfect sense now. I was just wondering.

They are technically separate companies, so they wouldn't go under. Also remember that Lampert is a majority owner in both as well as the REIT, so he has a vested interest in keeping them afloat. Many of us actually think that he wants Sears Holdings to go out of business. A bankruptcy will allow him to break all the long term leases on the crappy Kmart properties. In addition, the creditors will "seize" all the remaining real estate which has little value and auction it off, doing his dirty work for him. The Kenmore, Craftsman, and Diehard brands are in a subsidiary along with the most valuable 125 properties in the company. The subsidiary is listed as collateral against lawsuits, etc. As such, it has been set aside and will be immune to seizure during bankruptcy. Seeking Alpha wrote an in depth article about it last year. They said it could be worth as much as 30 billion. again, it can't be taken in a bankruptcy, so Lampert will keep all of it. the hometown and outlet stores will be the only Sears left selling the brands and Lampert will continue to own most of it.

I think Lands End will be the only division that will survive since they have their own catalog, not tied directly to SHC. If SHC tanks, then if I am correct LandsEnd will be the only suviving subsidiary from SHC.

Does anyone think Lands End will survive after SHC goes belly up?

Given that most of their merchandise is sears branded, think they're dead too. Can't imagine Kenmore manufacturers would support the volume of those few stores, or craftsman or....