They wouldn't provide details but they are they are taking action to enhance liquidity. Does anyone know what that means, enhance liquidity? Sounds alot like liquidate. Whatever it means they are going to enhance it which means increase or accellerate I think. Seems to me that the transformation to an asset light company is on track. I think the plan is working but I think the losses are steeper at this point than the brain trust anticipated
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Yeah, I commented on https://www.thelayoff.com/t/QwoBiFR about how the situation seems quite different on the Sears section than others.
1qai- Correct. But if you read other boards like Walmart, Costco etc. you will notice that most of the complaints are just the usual employee complaints of a bad SM or complaints about hours or customers. These are complaints you can find at any business.
For investment purposes you want to see if something like maintenance issues are just a few stores or company wide, if online problems are just a few stores of company wide, if employee moral is low at just a few stores or company wide. And I can go on but you get the idea. This is not the only imformation that I use, that would be stupid. But it does give an insiders view of what is going on at the store level apart from the financials
@1bjn Interesting....seems more like a waste of your time due to the extremely small sampling of associates on this site. But okay.....there is a site like this for Walmart too which is highly negative but we all know Walmart is doing great.
1bjn- Best place to to research on a company is to hear or read what goes on in the inside. Even companies that are in trouble or close to bankruptcy can be a good investment if you do your homework. See Warren Buffet and Berkshire Hathaway
@ikzm Why on earth are you on a forum for Sears Holdings associates?
@1kcm - First, I would like to thank you for your professional observations about the current state of affairs with SHLD. It is always enlightening when someone is able to interpret the legal and business jargon that make up the various reports released by the company. You do a great service for those of us trying to make sense of this complicated and dire situation.
Second, please ignore the corporate trolls that infest this site. They instantly attack and try to discredit any statements made about SHLD that they deem negative in nature; especially if the statements are accurate and factual. Their attacks are insulting, vicious and frequent. Do not allow them to dissuade you from posting!
The way I see it, enhancing liquidity could mean the difference between a Chapter 11 and a Chapter 7 bankruptcy. From what I recall, Sears Canada couldn't do a Chapter 11 restructuring because of liquidity issues.
@tuz-- Just a little clarification. I do know what I am talking about. I have and MBA in finance and business law and currently work in the finance department of a law firm which deals in restructuring corporate debt and finance.
So this is not some sort of "guess" of what something means. Everything a corporation puts out means something. The language is very specific and carefully chosen so that in the event of bankruptcy or a downturn of the business there will be what is called "covering your a**". This is to protect the business, the officers of the business and others from any legal action from shareholders, the government or other entities who have a stake in the company.
So respectfully, please read the financials as well as the Q reports to get a better idea of what if truly going on with SHC. They can be found here: http://searsholdings.com/invest. or on the Sears website
@tim Thank you for the clarifications. I had no idea what that line of legalese was talking about.
Okay let's try not to be something we aren't. We all try to "guess" at what everything means and then make it sound like we do. We don't know the "nuances" of what was said, and you know what knowing them won't matter anyway. If you want to look for a new job, do so. If you don't, don't. No need to try to "outsmart" your co worker as it just ends up making this whole site hilarious.
@vkr- Just a little correction before everyone blast you. It cost SHC $1.19 to sell $1.00 worth of goods.
Or they lose .19 on every dollar they sell.
Also from the Q--"we commenced a consent solicitation to amend the borrowing base definition in the indenture. We subsequently terminated the consent solicitation prior to its scheduled expiration"
Which means SHC tried to put the debt out to bid for someone to buy it and they had no takers. This means they have no way of getting any more cash unless Eddie funds it. Bad News
This is what was really said:
At the end of the quarter, we had a cash balance of approximately $200 million, compared to $258 million at the end of the prior year quarter. At October 28, 2017, the amount available to borrow under our revolving credit facility was approximately $39 million, compared to $174 million at October 28, 2016. We ended the quarter with $99 million of availability under our short-term borrowing basket, compared to $2 million at October 28, 2016.
After giving effect to additional cash proceeds of $167 million generated through real estate transactions and commercial arrangements subsequent to quarter-end, availability on our revolving credit facility and short-term borrowing debt basket was approximately $185 million and $120 million, respectively.
It cost sears $0.19 to sell a dollars worth of goods that's 19% loss on every dollar. Its impossible to make that up. They would have to find a way to cut 30% to the bottom line to actually make money at a base rate for a large retail biz. Selling stuff while loosing at a rate at 19% does not help anything you just burn the money up like they have been doing.
In a nut shell. To increase liquidity (get more cash flow) you either have to cut expenses (labor, close stores, not buy stuff) or sell assets that you own (close stores, sell Diehard etc. )
If you want the real picture of what is going on you need to read their 10-Q report which is not good.
This can be found with the financials they filed with the SEC
Stop with all your BS.
Eddie stated on his blog he would guarantee liquidity and he has done so at very favorable terms.
So calm the f--- down
Been the same for a while now and all out in the public. Nothing new here or worse than it has been for years.
@mis Wow, those stats are scary bad.
enhanced liquidity means to get some cash in the bank. they are down to 200M or 3.6 days of operational cash. Most retailers have about 30 days on hand
Same rhetoric. I see more store closings & hours being cut at the open stores. More real estate sales & rentals to non SHC businesses.
What really burns me up with the so called cost cutting is the money my store wastes on paper, redundant signs, supplies ordered incorrectly so needing to be reordered, the SMs salary for limited contribution, the lack of concern for register shortages unless they are $50+ dollars, you name it. And let us not forget the bigwig $million salaries with bonus.
But a minimum wage hour being paid here or there to someone actually doing labor is a major issue. Not overtime. Regular pay. Hate to say this but SHC is getting exactly what it deserves. The unfortunate part is that the employees who actually work are the ones suffering. The lazy employees have a well deserved awakening coming but everyone else? It's criminal.
More loans, more asset sales.
All enhance liquidity means is either sell some assets or spend less money on something like marketing which is already being done.
Search all you want you are not going to find the word bankruptcy.
Where/when did you see that? That's what they said nearly a year ago... https://www.prnewswire.com/news-releases/sears-holdings-announces-steps-to-enhance-liquidity-stabilize-operating-performance-300386348.html
They closed some unprofitable stores, sold off Craftsman, sold real estate to Seritage, and used other real estate as collateral for a loan from Eddie's companies.