22 Retailers Closing Stores

Discussion in 'Present & Current Events' started by Toroid, Aug 25, 2017.

  1. Toroid

    Toroid Founding Member

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    Why keep throwing money as a sinking ship?
     
    Last edited: Jan 8, 2019
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  2. nivek

    nivek As Above So Below

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    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.

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  3. The shadow

    The shadow The shadow knows!

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  4. wwkirk

    wwkirk Noble

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    That must be a local company. I never heard of it until now.
     
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  5. The shadow

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  6. nivek

    nivek As Above So Below

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    Yeah I think its like JCPenny or Kmart but all Wisconsin based shops, none outside that state...

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  7. The shadow

    The shadow The shadow knows!

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  8. wwkirk

    wwkirk Noble

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  9. Standingstones

    Standingstones See you in heaven, if you make the list.

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    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. $$$
     
  10. wwkirk

    wwkirk Noble

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    I believe it. The Best Buy I shop at is located inside a Sears store.
     
  11. nivek

    nivek As Above So Below

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    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...

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  12. Standingstones

    Standingstones See you in heaven, if you make the list.

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    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!
     
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  13. The shadow

    The shadow The shadow knows!

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  14. Toroid

    Toroid Founding Member

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  15. The shadow

    The shadow The shadow knows!

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  16. wwkirk

    wwkirk Noble

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  17. nivek

    nivek As Above So Below

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    They aren't doing anything differently, makes no sense...

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  18. Standingstones

    Standingstones See you in heaven, if you make the list.

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    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.
     
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  19. Toroid

    Toroid Founding Member

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    It looks like people are turning to the bottle. :biggrinn8:
    [​IMG]
     
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