For the pension fund nor the long term debtors. He will sell off as much of the real estate to seritage and sell the brands prior to bankruptcy and have the opp losses swallow up as much of the cash raised before they go bankrupt. The business consumes around $1.6 billon of cash a year all told. I think they can survive for a couple of years - however October 2018 $1.9 billion of debt is due to be repaid- they won't be able to pay that so the game is get as much out of the real estate prior to that- 18 months is plenty of time to do that. My guess is bankruptcy around oct 2018.
15 replies (most recent on top)
I love my Kenmore Elite washer/dryer pair that was made by LG.
No one wants to work in a store for free so 100% commission sales people aren't trying to ring the register in housewares.
It's kinda funny you should mention LG and Samsung considering LG is actually who makes kenmore elite branded refrigerators and washer and dryers.....look at a Lg then compare it to a kenmore elite.
They did not say they were selling 1billion in real estate. They said they would sell 1 billion of assets. 750M of that is already in hand , the sale of Craftsman. I would be surprised if they can sell 200M of real estate, unless they default on the loan due this summer to Eddie and Bill Gates .
You are now working for a Sears that doesn't even own craftsman... I believe he can raise money from real estate but what's the end result? You cannot sell the house without increasing sales as a result. All they are doing is paying debt but they won't be generating any extra income
Please name one kenmore appliance that is made by Samsung. Also how is your top load laundry doing, oh that's right LG is no longer making those either (s---s to lose arguably the best in laundry there) how far out are you in your Samsung appliances because I can tell you your comp has them in stock or can get them within a couple of days. Your customers are waiting what a minimum of a week. Do not tell me you don't have vendor problems!!! this is just appliances let's not talk about the rest of the store that is so bare you have to flex every gondo.
vendors aren't done with Sears, name the top 5 vendors Sears has left?
The real estate left to sell is worth very little, all the worst crappy falling apart properties are left. As for the comment on 3-4 associates standing around, that would be the commission associates who have nothing to do because they aren't selling anything. Lets be honest if you need an appliance now, you go to home depot, lowes, walmart or best buy, Sears is no where on the list of companies consumers trust to buy appliances from anymore......
Okay Sears sell multiple brands including Ssmsung and LG. Samsung, LG, and Whirlpool make Kenmore appliances along with several other manufacturers.
If they are going to sell $1 billion of real estate, expect much of that to be repaid to Eddie and only part will go to Sears.
op here- i have no doubt in the next 3 months eddie will announce real estate sales that will generate at least $1 billion- thats plenty to fund supplier purchases especially if there is a shock i.e the property he has sold is worth more than people think. People are asking why is edie and brice buying more shares if its going bankrupt and the answer is it is but not for a good while yet- circa 18 months, in between that there will be short squeezes that eddie and bruce can take advantage of - maybe even up to $20 a share- they are both in at an average of around $ 43 a share so they will want to recoup some of their losses- but as i said the real prize is to farm the real estate out to seritage. The event people are looking for to end sears is not this july its the repayment of amost $2 billion in october 2018- i doubt they can re-negotitate the debt so that will kill them. Until then i expect the share prize to continue to be manipulated. The key will be to see how many properties and for how much are sold in the next real estate deal.
As for the poster that said what will they sell - well i checked out the sears in newport mall nj- there was plenty of product across the 2 floors, the store looked neat and tidy, tons of electricals, mattresses etc and the new shirts from hawes and curtis. The issue was it was near empty....there were two roving emplyees with ipads trying to get ramdom people to sign up to shop your way.... pathetic. JC penney on the other hand was suprisingly busy- queue's at the chechouts 10+ deep.. quite a contrast. The other thing i noticed was just how many sears employees there were- people on here tlak about how shirt staffed they are but in the newport mall there were a lot of staff hanging around talking in groups of 3 to 4.... anyone know if the newport mall is leased or owned, simon group owns the mall?
You are "absolutely" right those Kenwoo made kenmores are definitely better than LG or Samsung that your competitors are selling. By the way how is your electronics and tools department? Don't worry we all know "empty"
Vendors aren't "absolutely done" with sears.
What about the pension fund. How's he going to fund that.
what are they gonna sell until 2018... vendors are absolutely done with Sears