Sears is now a penny stock

[jazz4cash]

I don't know what made Eddie Lampert think he could go from being a hedge fund manager to being CEO of Sears. What made him think he could make that leap? He's done terrible. Sears should have shown him the door years ago.

Actually I think he’s done extremely well. His objectives just aren’t what you may think they should be. No one else wanted the business so he’s milking all the value out for the benefit of the hedge fund. If they happen to regain their mojo in the process it’s a plus but that’s not the primary goal.

 

[UnrealizedPotential]

Actually I think he’s done extremely well. His objectives just aren’t what you may think they should be. No one else wanted the business so he’s milking all the value out for the benefit of the hedge fund. If they happen to regain their mojo in the process it’s a plus but that’s not the primary goal.

I realize that. What I'm saying is, it isn't right. If there were any sense between right and wrong Mr. Lampert would have been thrown out on his ear. The only thing he's done well is bleed Sears dry. I hate to see that, especially for a company that was down and out when he took over but still had a chance at recovery.





I feel for former employees of Sears who jobs were in jeopardy to begin with. Where is consideration for them? Where is consideration for the few customers that Sears had? What about the shareholders? Who was looking out for them? Apparently no one. That is wrong.


We will have to agree to disagree on this.

 

[RobbieB]

Yup, the Sears where I grew up was a first class store. They had a "nut and candy" bar where you could buy fresh roasted (watch the machines actually roast them) nuts of all sorts, peanuts, cashews, filberts, mixed, brazils and almonds right at the counter. You ordered they weighed and filled bags and you munched fresh hot roasted nuts!

They were really good -

Alas -

 

[Hermit]

I still have my old craftsman tool set and it is holding up after 20 years.

I still have my old craftsman tool set and it is holding up after [-]20[/-] 50years.

 

[Helena]

When the Chairman of Sears has a vested interest in buying the Sears properties at a bargain price, there's more incentive for him to drive the company into the hole and to work to salvage it.


To avoid bankruptcy, Sears CEO proposes selling off real estate. The retailer has tried that move before. - Chicago Tribune

And


https://www.usatoday.com/story/money/2017/03/22/sears-holdings-ceo-eddie-lampert/99487518/

That's what "oligarchs" did after the dissolution of the USSR, they bought up former state-owned companies pennies on the dollar, sold off anything of value and ran them into the ground leaving the workers without jobs to suffer. According to his Wiki bio he's an "avid follower of Ayn Rand"... and that meshes too.

.

 

[bobandsherry]

Interesting to read all the memories of how great Sears was, so interesting how they went from superstar greatness to a pile of dog doo. Too much horizontal integration without the right management team to have a clear vision on how to integrate and grow? Or thinking they were too big to fail (again blame put on management)? Or just change in consumer taste and Sears failed to adopt? Clearly now a Board that lacks any oversight and let's Lampert just suck all the assets out of the company, but why? Just interesting reflecting on how Goliath slayed itself.

 

[MichaelB]

I think the news here is not the imminent demise of Sears, it's that it survived for so many years. The history of US retail is an ongoing story of growth and collapse. The success of businesses like Walmart mean the failure of many others. In general, US retailers with lots of real estate are continually under siege and always need to innovate to continue as viable businesses.

 

[Independent]

Interesting to read all the memories of how great Sears was, so interesting how they went from superstar greatness to a pile of dog doo. Too much horizontal integration without the right management team to have a clear vision on how to integrate and grow? Or thinking they were too big to fail (again blame put on management)? Or just change in consumer taste and Sears failed to adopt? Clearly now a Board that lacks any oversight and let's Lampert just suck all the assets out of the company, but why? Just interesting reflecting on how Goliath slayed itself.

Back in the 1970's, my dad thought they were missing the big box shift.

He saw Kresge starting K-Mart and Dayton starting Target. He thought Sears should do the same.

It would have given them another 30 years before online retail arrived.

 

[bobandsherry]

I think the news here is not the imminent demise of Sears, it's that it survived for so many years. The history of US retail is an ongoing story of growth and collapse. The success of businesses like Walmart mean the failure of many others. In general, US retailers with lots of real estate are continually under siege and always need to innovate to continue as viable businesses.

Actually "Sears" didn't survive. It was acquired by KMart who basically bought for the name and real estate. And since then the new "Sears" has only survived by selling off assets. Thankfully they had lots of real estate as that's been their only true value.

Guess it's kind of like me in retirement, I continue to peel off assets to "survive" knowing that within a period of time I'll be 6 foot under, same place we'll find Sears (at current burn rate that will be long before me).

 

[bobandsherry]

It is amazing how a big salary and getting off the treadmill can appeal. It is the Board to blame.

Yes, Sears is likely to collapse, but its biggest stakeholder will be just fine

The twist in the tale is that Lampert, the company’s chief executive, main shareholder and a key lender through his hedge fund ESL Investments Inc., is unlikely to lose much money, even as other shareholders are wiped out. That’s because Lampert, again and again, has positioned himself to benefit from the moves required to keep Sears in business while shielding him from potential downside.

 

[kcowan]

Yup, the Sears where I grew up was a first class store. ... They were really good -

and they had a storefront in every town where you could take delivery of your items ordered from the catalog. The fulfilment volumes for those stores were off the charts.

What a lost opportunity!

(In 1981, I needed a new fridge for our new house. They had new one for half price at the Sears Clearance Center. Only problem was the Harvest Gold color. I had it painted white before taking delivery for $100. Still working great when we sold the house 16 years later.)

 

[samclem]

(In 1981, I needed a new fridge for our new house. They had new one for half price at the Sears Clearance Center. Only problem was the Harvest Gold color. I had it painted white before taking delivery for $100. Still working great when we sold the house 16 years later.)

12 years ago I bought a GE fridge from a Sears Clearance Center, it still runs great and I saved about 30% on the regular street price. It has sure held up better than the stock price of either GE or Sears.

and they had a storefront in every town where you could take delivery of your items ordered from the catalog. The fulfilment volumes for those stores were off the charts.

What a lost opportunity!

Sears did try some things to remain relevant. They bought Lands' End, which I thought might be a good move. DW liked it--she could try clothes on in our local Sears, buy exactly the color/version she wanted online at Lands' End, and if it wasn't perfect, she could return the items at Sears. It sounds like a losing proposition for Sears brick-and-mortar stores, but if they still get the sale through Lands' End it would be a win.

 

[GalaxyBoy]

I walked through our local Sears a while back and it looked like they had already had a liquidation sale. The tool section was especially empty.

But I recall their credit card service was a real cluster. I moved from what I later learned was one region to another, so when I paid the bill from my new address it didn’t get credited to my old address. I had to bring both bills to the store and show them that I had a credit on one bill that equaled the amount due on the other. They straightened it out after a long and frustrating conversation. I then asked the man if I could borrow his scissors and cut up the card in front of him! This was back when they would only take the store card or Discover.

 

[zippy2020]

I just bought a new fridge from Sears. The last one last 15 years.

Sears doesn't make appliances. It rebadges other mfgs' models, sometimes adding 'bells and whistles' but they are essentially the same.

Here's an article plus link to how you can check who mfg your "Sears" appliance:
https://www.hunker.com/13408815/how-to-tell-which-manufacturer-made-a-kenmore-appliance-from-sears

 

[Luvdogs]

Per CNBC, BK soon. Obviously no surprise.

 

[CoolRich59]

Remember when Sears planned to be a major financial services firm owned Allstate and then in the 80's expanded by acquiring Dean Witter, Coldwell Banker and starting up the new Discover card? They also did joint venture and founded Prodigy (how many recall that?). Along the way accumulated huge real estate holdings, including Sears Tower in Chicago.

Yep. I remember all those, including Prodigy. Sears was the Amazon and Walmart of its time.

So how do you go from that to the embarrassment they are today? Actually, they were dead back in the 90's, so their flame burned out in just over a few decades. Soon after KMart acquired them in 2004 (that was truly the embarrassment). Hard to believe that KMart after being BK could acquire a company like Sears that used to be the powerhouse of the of the 80's.

RIP

I live not too far from Sears headquarters in Hoffman Estates, IL. In appx 2001 I was in the market for a new j@b and they had an atty position open on their staff. I knew a couple of folks who worked for Sears and leveraged my network to try and get that position, but was turned down.

Another friend told me "You're lucky. That company is dead. They just don't know it yet." Very prescient words.

 

[Lakewood90712]

I walked through our local Sears a while back and it looked like they had already had a liquidation sale. The tool section was especially empty. .

Sears Holdings has recently been suing their craftsman tool supplier for limiting the stock fronted on credit. Apparently the supplier (Apex ? ) is worried about getting screwed if Sears goes into BK. How shocking .

 

[imoldernu]

Sears to file for bankruptcy today... Oct 10.

 

[brett]

I am surprised that Sears lasted this long.

 

[Freedom56]

This is going to be a multi-year shakeout of the retail sector. Sears is making the headlines now but JC Penny and others will follow soon. Bankruptcy protection is going to solve their long term problems. Sears has become irrelevant for years.

Don't blame Amazon or Ebay. It's not just the large department stores that are going to get hit, but optical retailers, jewelry store chains, mattress centers, furniture stores and many others. There are far too many stores and malls in this country. People have changed their buying habits. The younger generation are not buying material items like their previous generations. A large number aren't even buying cars and are using ride share and public transportation. It's not due to a lack of money either, many are holding jobs that pay in excess of $200K per year and they are in their 20's.

Thinking about all the excesses we have accumulated over the years, like sterling silverware and fine china dinner sets that we have used maybe a dozen times in the last 25 years, the younger generation have a point. The good news is that this will keep inflation in check for years to come. Healthcare is the only sector with skyrocketing costs not due to supply chain inflation but pure greed and that won't last forever.

 

[Texas Proud]

Yep. I remember all those, including Prodigy. Sears was the Amazon and Walmart of its time.



I live not too far from Sears headquarters in Hoffman Estates, IL. In appx 2001 I was in the market for a new j@b and they had an atty position open on their staff. I knew a couple of folks who worked for Sears and leveraged my network to try and get that position, but was turned down.

Another friend told me "You're lucky. That company is dead. They just don't know it yet." Very prescient words.

However.... it is 17 years later and many more 'healthy' companies have actually died along the way and Sears is still going...


But, everybody has now arrived as the Dr. has said it will be anytime now... it will pass in its sleep...

 

[bobandsherry]

However.... it is 17 years later and many more 'healthy' companies have actually died along the way and Sears is still going...


But, everybody has now arrived as the Dr. has said it will be anytime now... it will pass in its sleep...

Actually, the original Sears died in 2004 when KMart acquired them. So it was only 3 years later.

What is dying now is the POS KMart that went BK in 2002 and then came out of BK by ESL Investments and Lampert was named Chairman - yep, the same one sucking all the $$$ out of Sears today. KMart just grabbed the Sears name, and well, we see where that is today.

 

[Texas Proud]

Actually, the original Sears died in 2004 when KMart acquired them. So it was only 3 years later.

What is dying now is the POS KMart that went BK in 2002 and then came out of BK by ESL Investments and Lampert was named Chairman - yep, the same one sucking all the $$$ out of Sears today. KMart just grabbed the Sears name, and well, we see where that is today.

Interesting... I thought it was the other way....



Did they get rid of all top mgmt from Sears? What about the legal dept?



I went through a number of mergers and was still working until 2008 when the mgr that knew nothing was put in charge and got rid of all the 'old' people who knew everything... it was a disaster and they moved her on in a year or so but we were already gone...

 

[bobandsherry]

Interesting... I thought it was the other way....



Did they get rid of all top mgmt from Sears? What about the legal dept?



I went through a number of mergers and was still working until 2008 when the mgr that knew nothing was put in charge and got rid of all the 'old' people who knew everything... it was a disaster and they moved her on in a year or so but we were already gone...

Nah, I remember that announcement, had me floored and I knew then that Sears was doomed. The Chairman and CEO of Sears stuck around briefly, but was gone by 2006.

News story from 2004: Kmart to acquire Sears in $11 billion deal - Business - Stocks & economy | NBC News

 

[jazz4cash]

Kmart dying along with Sears is big. They also have storied history but nowhere as prolific as Sears. How this happened is a curiosity to me as KM had the WM sales model first. I can’t tell the difference and WM seems pretty healthy even with the threat from AMZN.