The Briefing Room
General Category => Economy/Business => Topic started by: Kamaji on August 12, 2022, 04:03:49 pm
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Sears poised to finally exit bankruptcy
By Lisa Fickenscher
August 11, 2022
Former Sears CEO Eddie Lampert has reached a settlement with his creditors to move Sears out of bankruptcy for a mere $179 million that would release the billionaire hedge fund mogul of any liabilities tied to the epic bankruptcy.
After nearly four years, the largest, longest running bankruptcy could be ending if a federal bankruptcy judge approves a proposed settlement between the iconic retailer’s former CEO and the company’s creditors.
Lampert and Sears’ creditors — including vendors who lost millions of dollars when Sears filed for Chapter 11 bankruptcy protection in October 2018 — along with the company’s professional advisers, landlords and investors agreed to a $179 million settlement, according to court documents.
Lampert was accused of running the billion dollar company – which also owned Kmart – into the ground and looting its assets during the four-year saga.
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Source: https://nypost.com/2022/08/11/sears-poised-to-finally-exit-bankruptcy/
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Brick and Mortar Retail was (is) such a cut thoat business.
40 years ago, if you had asked me if the likes of KMart and Sears would be gone, I'd say you were crazy.
Now, the entire concept of Brick and Mortar is fighting for its collective life. Example? I had a Walmart employee tell me that using the word "Amazon" was forbidden in his store.
That is how big a threat online retailing is to this sector.
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Sears at one time had the chance to be "Amazon" before Amazon took off. They had the warehouses. The supply chain. The Sear catalog opperation. They also had Piss poor management that woulnt give up on the 1900's business model of brick and mortar stores in a mega mall setting.
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Brick and Mortar Retail was (is) such a cut thoat business.
40 years ago, if you had asked me if the likes of KMart and Sears would be gone, I'd say you were crazy.
Now, the entire concept of Brick and Mortar is fighting for its collective life. Example? I had a Walmart employee tell me that using the word "Amazon" was forbidden in his store.
That is how big a threat online retailing is to this sector.
I don't know I saw so many retailers hit the graveyard forty years ago out here, Gemco, Fedco, Adray's, White Front, Best Products, Montgomery Wards, Builders Square, National Lumber, Ole's and more. I think the trend was already in place well before online sales took off.
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Sears at one time had the chance to be "Amazon" before Amazon took off. They had the warehouses. The supply chain. The Sear catalog opperation. They also had Piss poor management that woulnt give up on the 1900's business model of brick and mortar stores in a mega mall setting.
:thumbsup:
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I don't know I saw so many retailers hit the graveyard forty years ago out here, Gemco, Fedco, Adray's, White Front, Best Products, Montgomery Wards, Builders Square, National Lumber, Ole's and more. I think the trend was already in place well before online sales took off.
There always has been a system of attrition in this dog eat dog sector.
The one big difference now is the more supposed insulated players like Walmart and Targer are sweating.....
Mark my words, in my lifetime, there will be few of any traditional brick and mortar stores.
Instead it will be all Amazon like delivery, or visiting a counter at a fufillment station.
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Brick and Mortar Retail was (is) such a cut thoat business.
40 years ago, if you had asked me if the likes of KMart and Sears would be gone, I'd say you were crazy.
Now, the entire concept of Brick and Mortar is fighting for its collective life. Example? I had a Walmart employee tell me that using the word "Amazon" was forbidden in his store.
That is how big a threat online retailing is to this sector.
@catfish1957
Well,ordering online is not only cheaper,but it saves wear and tear on your car,as well as your time. This is not a small consideration in these days of outrageous vehicle and gasoline expenses.
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There always has been a system of attrition in this dog eat dog sector.
The one big difference now is the more supposed insulated players like Walmart and Targer are sweating.....
Mark my words, in my lifetime, there will be few of any traditional brick and mortar stores.
Instead it will be all Amazon like delivery, or visiting a counter at a fufillment station.
@catfish1957
Yup!
For all practical purposes it is a done deal.
Most men don't like shopping all that much so we won't miss it,but I suspect it is going to take a toll on the ladies.
And truthfully,there ARE some things,like clothes,you just need to try on in person before buying. ESPECIALLY in this day of "Chinese everything",where one size is supposed to fit all. Just try to find a pair of crocs in wide or extra wide these days if you don't believe me.
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Sears was a cautionary tail of attempted private equity real estate arbitrage at the height of the 2007/2008 real estate market.
Eddie Lampert's scheme was to acquire Sears to profit from the sale of its "undervalued" real estate and "brand assets".
This is a prime example of vulture capitalism.
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When Sears got in bed with K-Mart their fate was sealed.
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"After nearly four years, the largest, longest running bankruptcy could be ending"
Off-topic, but...
"Longest running"???
The New York, Ontario and Western Railway went bankrupt in 1937.
It continued to operate (under administration of the bankruptcy court) for TWENTY YEARS, finally shutting down in March 1957 (when it was ordered liquidated by the feds because the company had no money left to even pay Railroad Retirement taxes to the government).
Not "the longest".
Not anywhere close...
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Sears at one time had the chance to be "Amazon" before Amazon took off. They had the warehouses. The supply chain. The Sear catalog opperation. They also had Piss poor management that woulnt give up on the 1900's business model of brick and mortar stores in a mega mall setting.
That has confounded me! Not only Sears, but Penny's and Monkey Wards...
All they had to do was convert their catalogues - which were necessarily already electronic-ready just for printing - convert them to website and develop a 'shopping cart' and payment structure...
I know that's not literally that easy, but surely they were all 3/4ths of the way there, just by the nature of being a catalogue company - And Sears, the biggest and baddest of them all.
And as an aside, I miss K-Mart. I have not been able to find a decent set of crappy boots since they left town. I would very happily trade in our Wally World for a K-Mart again. As far as crap goes, their crap was an order of magnitude better.
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Mark my words, in my lifetime, there will be few of any traditional brick and mortar stores.
Instead it will be all Amazon like delivery, or visiting a counter at a fufillment station.
That is such a step backward to the 1800s.
Such a loss of convenience.
Such a loss of distribution and inventory - This distribution debacle we are currently living with would have been largely padded by the shelves in days gone by.
I quite properly do not understand how folks do it. So much better local. So much better to heft an item in the hand. SO much easier to return if faulty.
I do not see it as improvement. :shrug:
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@catfish1957
Well,ordering online is not only cheaper,but it saves wear and tear on your car,as well as your time. This is not a small consideration in these days of outrageous vehicle and gasoline expenses.
Maybe, but like Mrs Joe did, I prefer to handle some products, especially clothing and footwear, before I buy.
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That has confounded me! Not only Sears, but Penny's and Monkey Wards...
All they had to do was convert their catalogues - which were necessarily already electronic-ready just for printing - convert them to website and develop a 'shopping cart' and payment structure...
I know that's not literally that easy, but surely they were all 3/4ths of the way there, just by the nature of being a catalogue company - And Sears, the biggest and baddest of them all.
And as an aside, I miss K-Mart. I have not been able to find a decent set of crappy boots since they left town. I would very happily trade in our Wally World for a K-Mart again. As far as crap goes, their crap was an order of magnitude better.
What size boot/shoe do you wear? @roamer_1
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Until this damn MIT just in time supply chain crap is done away with, brick and mortar will continue to disappear. Other than stuff I need right this minute, I never go to the store because they never have what I need and I refuse to just buy what they have.
The home depot/lowes type store will always do well because when you need a 2x4 or hammer, you need it now, but a new pair of jeans I can wait a week...
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What size boot/shoe do you wear? @roamer_1
@DCPatriot
Depends... 11-12 mostly in a double or triple E ... Mostly winter/summer difference.
Mukluks... 13 or so. :laugh:
Sh*tkickers, 10 1/2 to 11
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Until this damn MIT just in time supply chain crap is done away with, brick and mortar will continue to disappear. Other than stuff I need right this minute, I never go to the store because they never have what I need and I refuse to just buy what they have.
The home depot/lowes type store will always do well because when you need a 2x4 or hammer, you need it now, but a new pair of jeans I can wait a week...
JIT derives, I think, from inventory taxation, more than any other thing.
Used to be that retailers could convert profit to inventory or flooring to reduce their tax rate.
Nowadays you have to pay tax on inventory that may sit there getting taxed over and over for years.
Don't make sense to carry anything but quick turnover stuff - That's when the auto parts stores quit stocking old and odd parts... I used to be able to walk into Weissman's (industrial supply warehouse) and pick just about everything I needed right off the shelf - Ordering was an oddity. Same with auto parts stores. Same with building supplies... All the way up here in Timbuckfour.
Think of the value of all that stuff - Getting taxed again and again. Warehouses emptied.
Now... the strange thing is... How do big-box stores get around that now?
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@DCPatriot
Depends... 11-12 mostly in a double or triple E ... Mostly winter/summer difference.
Mukluks... 13 or so. :laugh:
Sh*tkickers, 10 1/2 to 11
The width eliminates the idea.
Listed several properties holding "Reverse" mortgages, where the owner passed. When this happens, everything inside the house remains.
Have TIMBERLAKE and ECCO boots in size 11 but a normal width.
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The width eliminates the idea.
Listed several properties holding "Reverse" mortgages, where the owner passed. When this happens, everything inside the house remains.
Have TIMBERLAKE and ECCO boots in size 11 but a normal width.
Yeah... Good idea, but I am a big boy with a wide foot and a high instep. Thanks anyway. :beer:
That's kinda why I liked KMart so much. Their crappy construction boots were what I wore most of my life for regular work. They fit me good, and would last at least half a year, and cost what, maybe 20 bucks? Maybe 30? And Spalding High Tops. Same thing. And my last sainted pair of Hermann Survivors came right from K-mart... All in wide sizes. Always right on the shelf.
Not so easy anymore. :shrug:
Buying me boots anymore is an act of Congress.