Discussion in 'Present & Current Events' started by Toroid, Aug 25, 2017.
Why keep throwing money as a sinking ship?
They shoot their own foot...
How Sears wasted $6 billion that could have kept it out of bankruptcy
Sears’ ability to stay in business is in doubt after the company filed for bankruptcy protection this month.
Yet Sears spent $6 billion buying back its own shares since 2005 in a futile effort to help support its stock price. The stock plunged more than 99% in value, from a high of $143.91 in 2007 to less than $1 a share a couple of weeks before its bankruptcy filing. In bankruptcy, the shares are essentially worthless.
“If they had put $6 billion into upgrading stores and website development, they could be in a very different position right now,” said William Lazonick, a retired University of Massachusetts economics professor and an expert in share repurchases. “They could be in a much better position to compete in the changing world of retail.”
Sears could have used the money to reduce its debt burden and provide the working capital needed to keep the company out of bankruptcy.
The company had more than $5 billion debt on the books at the time of the bankruptcy filing. Ahead of the filing, Sears chairman and primary shareholder Eddie Lampert had proposed a plan to sell assets and renegotiate debt down to $1.2 billion, which he argued was all Sears could afford.
Bankruptcy looms for Shopko
add shopko to the list
That must be a local company. I never heard of it until now.
one last try .
Sears chairman confirms new $5 billion bid to save bankrupt retailer | Reuters
Yeah I think its like JCPenny or Kmart but all Wisconsin based shops, none outside that state...
Shopko - Wikipedia
I'm with you. I hope Sears makes it.
The internet article that I read stated that Sears doesn’t much care about selling goods these days. Sears is more interested in all that real estate than can be sold or leased to other companies. That’s where the money is. $$$
I believe it. The Best Buy I shop at is located inside a Sears store.
I think they can do well with the property they have which is more stand-alone from a mall, I think the stores they have connected to a mall would be more difficult to move, I could be wrong, not sure...
Two stores (Kmart and Sears) have folded up in 2018 in my area. Both have new tenants. There is always someone ready to take a risk in the retail market. The same goes for restaurants. There is probably a 50% chance or more of failure yet I see new restaurants popping up all the time. Go figure!
Shopko files for bankruptcy, will close 38 more stores
50 haunting photos of abandoned shopping malls across America
Sears to Stay Open, After Edward Lampert Prevails in Bankruptcy Auction
Sears is saved for now
Good. I hope it sticks.
They aren't doing anything differently, makes no sense...
One of our Sears stores in the area went out of business. It has been converted to a state liquor store. I can tell you the liquor store is doing infinitely more business than the Sears store could have ever dreamed of.
It looks like people are turning to the bottle.
Judge gives Eddie Lampert the greenlight as Sears get a second shot at life
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