Right now, there are about 200 stores that are open just to keep the lights on in those locations. Any ripple in sales or the economy in general and Sears Holdings will shut them down fast.
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Actually, I think that the one touch policy is actually a good idea. It does cut down on labor and it does get most things out of the back room. Now, not having the labor and hours to actually make the policy work is another thing. As far as the Kmart going out of business, who knows, but unless you find a new job you are here until the end
Had a good laugh about the social media policy bit in your post Glory Days. However nobody is going to find out if you posted here unless you post the identifying information.
Nice to see you joining us on this forum, Mr. Lampert.
You guys here in this forum are all paranoid and wishing for the worst it seems. Yes I get where you are coming from by how the company has acted this past fiscal year but that does NOT mean all stores are gearing for a closing just because of this "one touch" initiative in phases. It could be a last ditch effort of the company to make its counters fuller looking and partly make it easier on associates to find and keep track of merchandise which helps towards inventory at the end. You can argue theories and company closings all day but when it gets down to it you Don't know. Not any of you. I don't either of course but at least I'm willing to give it some positive thought. With all these recent news articles this forum will now be top priority for the company to see the ramblings going on and let's hope they don't find out which employees are breaking social media policy by some weird means or hack. Anyway, until they announce another company change which probably won't be until 2017 fiscal year like they did this past year..we don't know what the company will do. It's alreay known they will keep closing unprofitable stores and sale real estate to make money but yes perhaps fate has already been sealed for this company for awhile now and it's just slowly crawling to the abyss now..I hope not. I hope they can restragetize their direction and go on a profitable path..if that means close more stores until they have a mangeable bottom line..then sadly perhaps so be it...BUT I like maybe the rest of you want to see them stay open. Well rant over. Try to stay positive guys and not think the worst until it's from the actual company itself instead of paranoid employees thinking the worst cause of these radical directions. It's rough right now for sure, for some more than other stores with payroll and all but all we can do is ride the wave out and see where it goes.
we started to purge our stockroom 2 weeks ago before a big visit that we were supposed to have. I think that the time is coming soon for them to let us know, i figure before the end of next month
The Phases are just the order in which the stores start going to the no backroom program. Not all of them have closed yet, but there does seem to be a pretty close correlation. A few of the Phase 2 stores have closed and many more will be announced in the next few weeks when the next group of closings is announced. Some of the smaller Kmarts might not go to the program as they will be easy to close anyway. the fact that ALL Kmarts are going to the program, even ones making 15 milion or more a year in sales. Stores with that much sales volume having nothing in the stockroom is as clear an indication as any that they do not plan for the Kmart division to be around long. Lampert has to wait until June of 2017 to file bankruptcy for SHLD because of the REIT he created with the property last year. When he spun those properties off it started a 2 year clock. if SHLD becomes insolvent during that time, he can PERSONALLY be sued. It is curious as to the Phsaes in which stores are being put. We have several in our district that just started it and are very high volume but others that have very low volume that haven't been put on it. That is what makes me think that many will close without going to the program. if they are very small, it will be easy to liquidate them anyway. In terms of an actual plan, no I haven't seen one, but ACTIONS speak louder than words and from the top down, this is one crooked company. Lampert is the majority shareholder and is only going to act in HIS best interest so he doesn't need an actual plan in place anyway.
Thanks Blulighter for the info. I believe a lot of us were under the impression that the "Phases" were what mode we were in for closing. So the "Phases" are more stores that are grouped together if I have that right. If most of the Phase 1 & 2 stores are closed or closing and they announced those stores in April & May, (end of Q1) then they probably will announce Phase 3 close to Q2 results. If that happens, than it's reasonable to assume the other groups of stores, would follow in succession around each quarter. Our lease is up summer 2017, so that would make sense for our store. Who knows what will really happen, they do call him "Crazy Eddie on Wall Street. Thanks again.
Where or from whom did you hear that there was a plan on place regarding bankruptcy and closing all of the Kmart (and Sears) stores?
I do agree that it is pretty obvious that the company is not going to be around much longer. However, I'm just curious if Eddie and the higher ups actually have a plan in place to wind it all down. I have no doubts at all that SHLD will cease to exist by 2020 at the very latest. I'm thinking mid-2017 is when the EKG will go flat with the announcement being made right after the 2016 holiday season.
That said, I couldn't imagine that there would be an official exit strategy in place and in force unless it was covered under an NDA. Vendors, other creditors and shareholders would be in an uproar and the plans would have leaked out to the media by now. If those things took place it would make sense to close up shop right then and there.
It's obvious that the higher ups (like Leena Munjal) are still most likely in their state of denial. Eddie has made some pretty dumb moves but I'm sure he knows what is going on and what is next. He has no more tricks up his sleeve other than to wash his hands of the whole thing once and for all. It is very likely that it will be announced any day now, probably during the 2nd quarter earnings announcement, if not before or after the holidays.
But who really knows? He may send another 500M loan towards SHLD's way before the 11th hour. Why he would do that at this point in time, I don't know...
From what I understand, they are supposed to do 3, 4 , and 5 before October and then break for Christmas. You might be starting the "one touch" program at the beginning of next year. ALL Kmart stores are going to it as they are preparing for liquidation and a shut down/ bankruptcy next year. Many stores of course will still be closing before then.