How many stores can Sears function on before being forced into bankruptcy? We are down to what, a little over 500 stores right now (not counting Kmart?)
How many more can be closed, realistically before the final step? I don't think we can keep closing until there are no stores left. So what's the cut off number?
Guess again
sears Canada closed when the total number of remaining stores were at 500, so there are probably around 300 locations that need to be deleted before the end
Spot on, nbk.
Barring total immediate catastrophe the strategy will be to close a limited number of stores in a certain time frame. For Example in waves of 10, 20, or 30. Reason 1: If Eddie wants to play the charade out long enough to extract the most value for himself (Mass closures would create more panic and the stock would tank before Eddie is ready for it). Reason 2: In order to play this charade out long enough Eddie still needs some incoming revenue from functional stores. Reason 3: Closing larger numbers of locations at a time would overwhelm the liquidation partners. Reason 4: Eddie needs to make it seem like he's trying to make everything continue on in order to satisfy certain parameters of future BK qualifications.
There are other reasons too, but these are just a few highlights. Basic gist is that Eddie is trying to control this process like a glider gently circling in the air and coming to a somewhat controlled stop on the ground.....instead of a loaded airliner slamming into the side of mountain.