Sears Goes Bankrupt, Mired in Debt and Deserted by Shoppers

[Frank Cannon]

Our local plumber sent us to a wholesale supplier to "the trade," advising we not purchase from Home Depot/Lowes

I buy shit for my rentals at the box stores. I buy shit for my house at the supply houses. Even the valves and elbows are a better quality.

[catfish1957]

I miss the Sears catalog

For us old folks at age 5-10......

Maybe the most read item between October and December. (The Sears Christmas Wish Book Catalog)

[roamer_1]

For us old folks at age 5-10......

Maybe the most read item between October and December. (The Sears Christmas Wish Book Catalog)

Yeah... not up in here... The outhouse was too cold for sticking around very long...

[GtHawk]

FWIW -- this article has a list of the 142 stores that will be closing:

https://time.com/money/5424687/sears-stores-closing-2018-bankruptcy-liquidation-sales/

I'm amazed that the usually empty Kmart near me is still staying open.

One of those closing is in the South Coast Plaza Mall, in Costa Mesa, CA. That is an upscale mall and it's not surprising there wasn't enough demand for it's crap, plus the mall will I'm sure, be happy to lose the low class element that drifted out of the Sears into the the more upscale retailers. I did notice that there is a Kmart that is being left open not to far away in Cost Mesa so the Hispanics will be happy.

[Fishrrman]

Freya wrote:
"I’ll miss Kenmore."

We have a Kenmore gas stove here that was bought back in the early 1980's and it still works*

We also have a Kenmore electric drier that's now about 24 years old. I've replaced the belt on it once, and a couple of years ago the original motor gave out, so I bought a replacement for $150 and installed it myself.

And... a Kenmore washer that is 11 years old, still doing ok. I believe both the washer and drier were made for Sears by Whirlpool.

* Several weeks ago the spark igniter for the gas burners stopped working. I ordered a replacement part online, but before it arrived, the igniters started working again by themselves. Might have been a period of high humidity we had here (CT). I'll keep the igniter module around just in case.

[Absalom]

Sears Roebuck was founded in 1892 and endured for126
years, an astonishing record of achievement and survival.
According to Barron's, by 1935, corporate longevity dropped
below 90 years.Then by 2000 it had fallen to 18 years.
Everything, EVERYTHING, in our material world withers and
dies, despite our best laid efforts and plans.
Yet many are shocked, chagrined, angry.........Why???

[mountaineer]

Maybe all those laid off Sears and KMart employees can take heart:

CNBC

Job openings hit a fresh record in August, indicating companies could face more inflationary pressures ahead with a tight labor market.

The vacancies level hit 7.14 million for the month, according to the Job Openings and Labor Turnover Survey, a report Federal Reserve officials watch closely for clues about where employment stands.

The total number of hires also reached a new record of 5.78 million.

Openings dwarfed the total level of workers looking for jobs  ...

[Applewood]

Sears Roebuck was founded in 1892 and endured for126
years, an astonishing record of achievement and survival.
According to Barron's, by 1935, corporate longevity dropped
below 90 years.Then by 2000 it had fallen to 18 years.
Everything, EVERYTHING, in our material world withers and
dies, despite our best laid efforts and plans.
Yet many are shocked, chagrined, angry.........Why???

Don't know about anyone else, but I'm not shocked, angry or chagrined.  Unless you live under a rock, you have known for years that bankruptcy was where Sears was headed.  It was no surprise.    Perhaps some people are surprised Sears lasted this long.    But the inevitable destruction of Sears was a long time coming. 

If nothing else, Sears is a good example of what happens to a once excellent retailer when management forgets about the customer and focuses instead exclusively on the almighty dollar.  A successful retailer keeps its customers happy and makes money.  Can't make money if you give the customer shoddy merchandise and poor service. 

Other struggling retailers like Penneys and Macy's would do well to learn from the whole Sears mess, but I doubt they will. 

[truth_seeker]

On Sears' balance sheet is a ton of valuable real estate; valuable until they mismanaged their retail business, on down, and on down until this point.


I learned from a top manager:

"What are we doing,, why are we doing it,, when are we going to stop?"

Although he was in the corporate level of engineering & construction, his saying is broadly applicaable.


Sears had literally decades to change, but failed miserably.

[mountaineer]

Don't know about anyone else, but I'm not shocked, angry or chagrined.  Unless you live under a rock, you have known for years that bankruptcy was where Sears was headed.  It was no surprise.   

Exactly. The only surprise is that they didn't declare bankruptcy earlier.

[DCPatriot]

Exactly. The only surprise is that they didn't declare bankruptcy earlier.

This is still a Chapter 11 reorganization.   It is not a liquidation...yet.

[Applewood]

This is still a Chapter 11 reorganization.   It is not a liquidation...yet.

But I think liquidation is going to happen sooner or later.  They are already talking about selling off remaining stores.  They aren't really trying to stay in business. 

[truth_seeker]

This is still a Chapter 11 reorganization.   It is not a liquidation...yet.

Besides real estate and debt, what do they have?

[Absalom]

Don't know about anyone else, but I'm not shocked, angry or chagrined.  Unless you live under a rock, you have known for years that bankruptcy was where Sears was headed.  It was no surprise.    Perhaps some people are surprised Sears lasted this long.    But the inevitable destruction of Sears was a long time coming. 

If nothing else, Sears is a good example of what happens to a once excellent retailer when management forgets about the customer and focuses instead exclusively on the almighty dollar.  A successful retailer keeps its customers happy and makes money.  Can't make money if you give the customer shoddy merchandise and poor service. 

Other struggling retailers like Penneys and Macy's would do well to learn from the whole Sears mess, but I doubt they will.

--------------------------------
Respectfully, my query Why? wasn't directed at any post and
your rules for business success are right on the mark. What of it?
In our world, regardless of attitude, behavior, impulse or sentiment,
be it for better or worse; nothing endures forever! Reality.

[roamer_1]

Sears Roebuck was founded in 1892 and endured for126
years, an astonishing record of achievement and survival.
According to Barron's, by 1935, corporate longevity dropped
below 90 years.Then by 2000 it had fallen to 18 years.
Everything, EVERYTHING, in our material world withers and
dies, despite our best laid efforts and plans.
Yet many are shocked, chagrined, angry.........Why???

While that is right, still there is a correlation in there someplace, related to the hostility that corporations must survive.

Corporations, business in general, is supposed to be somewhat ruthless, and I get that. But *none* are managed perfectly... So I think the mismanagement accusation is way overplayed. Likewise your statement that everything withers - That assumes a thing does not, or is incapable of change. Any corporation is capable of becoming 'new' again.

Yes, there are problems with old encrusted corporations being too top-heavy, and unable to be nimble in the face of change...

But more than any other thing, hostility toward capitalism by government, ridiculous regulation and labor demands, and an out-of-control civil suit environment have made any misstep in business a potential and literal disaster. And once that disaster happens, there is nothing but a thin line to walk to recover, which is nearly impossible.

That is why corporations don't last as long as they used to.

[Skeptic]

I went to Sears to purchase a winter coat but couldn't find what I wanted although they had a large selection. I might go there for shoes or slacks. Average department store, hit and miss. A lot like Khol's.