Sears is dead

[Captain Blood]

https://apnews.com/1cbf64586e114ac38bab82a42b8be12e
Sears files for Chapter 11 amid plunging sales, massive deb


I thought they would hold off on that till after Christmas. I know many of the stores will continue to operate, but I didn't think the bankruptcy would happen this fast.

[Run Silent]

Originally Posted by Real Dodger

https://apnews.com/1cbf64586e114ac38bab82a42b8be12e
Sears files for Chapter 11 amid plunging sales, massive deb


I thought they would hold off on that till after Christmas. I know many of the stores will continue to operate, but I didn't think the bankruptcy would happen this fast.

It bums me out, since Craftsman and Kenmore would good brands that I purchased regularly, but it was bound to happen as the stores just simply don't have a current business model that makes sense to today's consumers.

I did find out that Lowes is now carrying Craftsman, so that's a plus for me.

[Red Bread]

Realize there is a huge difference in Ch11 and Ch7 bankruptcies. They should be able to restructure under bankruptcy and emerge as a viable company. Not that Ch11 is a guaranteed path to success...

[Run Silent]

Originally Posted by Red Bread

Realize there is a huge difference in Ch11 and Ch7 bankruptcies. They should be able to restructure under bankruptcy and emerge as a viable company. Not that Ch11 is a guaranteed path to success...

This is correct, although Sears will likely emerge from BK as a much smaller private company. I believe as part of the ReOrg, they will be closing around 400 of their 600 Sears & K-Mart stores.

I wouldn't be surprised to see them shutter nearly all of the K-Mart stores, as they are the ones with the largest losses in order to help service some of the debt that is being held under the Sears umbrella.

Honestly, though, I don't see how Sears can offer a viable business model going forward with their current plans.

[Red Bread]

Agreed, not sure what they really offer anymore. I'd imagine K-Mart is toast in the reorg and Sears will go to an online only or wildly reduced brick and mortar presence.

[Captain Blood]

Originally Posted by Red Bread

Realize there is a huge difference in Ch11 and Ch7 bankruptcies. They should be able to restructure under bankruptcy and emerge as a viable company. Not that Ch11 is a guaranteed path to success...

I know, but have you been in one of the stores lately? It's worse than Walmart. Last time I walked through there to get the mall, nobody was in there, while the rest of the mall was packed.

[Red Bread]

Originally Posted by Real Dodger

I know, but have you been in one of the stores lately? It's worse than Walmart. Last time I walked through there to get the mall, nobody was in there, while the rest of the mall was packed.

Nope, once Craftsman was sold, I couldn't think of why I'd need to go in one. It wouldn't surprise me to see them not get approval for Ch 11 and get forced into Ch 7 anyway. I was actually expecting them just to go directly to 7 when the rumors surfaced that they'd be filing.

[UncleWede]

Not_Judy better get those last few pairs of Toughskins, quick!!

[Run Silent]

Originally Posted by Red Bread

Nope, once Craftsman was sold, I couldn't think of why I'd need to go in one. It wouldn't surprise me to see them not get approval for Ch 11 and get forced into Ch 7 anyway. I was actually expecting them just to go directly to 7 when the rumors surfaced that they'd be filing.

Yeah, I was questioning the rationale behind a Chap.13 as well. Seems unlikely as a business proposition. I mean, Toys-R-Us was a Chap.7 and they have a better business model than Sears does.

[stbm5]

eddie lampert has systematically looted the company and sold off profitable brands. they won't make it if he remains in charge.

[Red Bread]

Originally Posted by stbm5

eddie lampert has systematically looted the company and sold off profitable brands. they won't make it if he remains in charge.

Well he left the CEO role today. He's still on the board, but that won't really matter in the next few weeks.

[PshhhhhMW]

Youd think everyone would learn from Blockbuster Video and AOL but it's still happening. General Electric is heading that direction too I read somewhere.

[TXSTYLE]

RIP.... Craftsman 😢

[RickFLM4]

Sears and Kmart have sucked for a very long time. Sears was good for Craftsman before they sold it and good for appliances for a long time. Clothes? Jewelry? Softer side of Sears? NFW. Lampert finished them off but they were dying before he got involved. Their time passed like many other retailers.

[hot chili powder]

Someone earlier said Sears is dead......they passed away years ago only they didn't know it. Here in Green Bay the store was sad, locked up tight now, RIP.

[E92 M Sport]

Shame. I’d say 70% of my tools are Craftsman.

[ASAP]

Walking into Sears in the last 20 years is traveling back in time... the stores had 0 modernization and sold the same tired shit with 0 marketing. Good riddance... mark my words; JCP is next.

[jgoens]

Originally Posted by Real Dodger

I know, but have you been in one of the stores lately? It's worse than Walmart. Last time I walked through there to get the mall, nobody was in there, while the rest of the mall was packed.

Yeah, agree. Here in the silicon valley where people have money and like to spend, Sears and Kmart are so outdated and generally not a welcoming and modern environment. Business models that work are Costco and Target...wonder why the others could never figure that out. The 1950's generation has passed.

[dzvero]

Thanks, I need to spend my gift certs

[Germanauto]

Walk into any Macy's and it's clear they are next.

[Haywood]

My first job in junior HS was at a Sears. Worked in the catalog department. Very sad to see.

But, agree with everyone here. They had no ability to re-invent themselves like say Best Buy. Amazon has killed off many a retailer. And K-marts are shitholes.

[CarPoor]

Having seen them come through on BR watch since the late 90s in my career I’d say it’s long overdue. Unfortunate, but overdue.