Armed Polite Society
Main Forums => The Roundtable => Topic started by: Hawkmoon on January 08, 2019, 08:41:48 AM
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https://www.reuters.com/article/us-sears-bankruptcy-liquidation-exclusiv/exclusive-sears-to-ask-bankruptcy-judge-to-liquidate-idUSKCN1P218J
Where do they still have stores operating? The Sears store in the mall I (infrequently) frequent has been closed for several months. The Sears hardware store I used to go to closed more than a year ago.
I am confused by the fact that Eddie Lampert is even being allowed to bid on the wreckage. Is he the new George Romney? Seems to me he's the guy who guided Sears to its current, disastrous state of affairs, and now he wants to take over? The shareholders should be chasing him down the street with pitchforks, hot tar and feathers.
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Reuters Business is reporting that Lampert's restructuring bid has failed and that the company will ask the bankruptcy judge for permission to liquidate.
Sad, really. Sears was the Amazon of the 20th century.
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You and I were posting at the same time.
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Threads merged.
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Well... there might be something useful in the store closing sale. I'll have to keep an eye on the local Sears.
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Well... there might be something useful in the store closing sale. I'll have to keep an eye on the local Sears.
If it's like our local store, probably not. They had all the crap that wasn't selling well at regular prices marked down 50-70%. The good stuff that always sells, like tools and appliances, was only down 10-20% until there was essentially noting left but the beat-up floor models. A few decent deals on storage and display racks, should you need that kind of thing.
Brad
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https://www.youtube.com/watch?v=uBxMPqxJGqI (https://www.youtube.com/watch?v=uBxMPqxJGqI)
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If it's like our local store, probably not. They had all the crap that wasn't selling well at regular prices marked down 50-70%. The good stuff that always sells, like tools and appliances, was only down 10-20% until there was essentially noting left but the beat-up floor models. A few decent deals on storage and display racks, should you need that kind of thing.
Brad
When we walked in there while we were gawking at the lack of traffic at the local mall, there was a chintzy little breakfast nook my wife liked.
At clearance prices, it might be worth it.
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Sad, really. Sears was the Amazon of the 20th century.
Makes you wonder what business model will emerge to make Amazon obsolete and shutter their doors website. My gut hunch would be multi-material 3D printing would be a minimum, or Star Trek TNG replicator technology. Sounds far-fetched, but who in the 1930's would have ever thought you could put an entire department/catalog store's inventory into a billion peoples' faces on a screen the size of a postcard and deliver product in 24 hours?
I also wonder when JC Penney will be closing their doors, as one of the other big catalog vendors that became a department store.
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Makes you wonder what business model will emerge to make Amazon obsolete and shutter their doors website.
I have often pondered that myself of late. I may or may not have (not sarcasm - I actually don't recall) thought that Amazon had a greater potential than books back when I first discovered them as an online bookseller. I was of course too stupid to buy their stock, but even if I had, I'm not sure I could have foreseen what they have become (both the good and the bad).
I'm not sure what will be next in the Sears/Amazon/ "X" transition.
It's of interest to me that many millennials are transitioning back to small brick and mortar for many of their shopping needs.
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With a successful mail and phone order business as well as a well developed distribution system, Sears should have been a natural to become the new Amazon.
But a combination of incompetence and - IMHO - corruption from it's leadership killed it.
. . . I am confused by the fact that Eddie Lampert is even being allowed to bid on the wreckage. Is he the new George Romney? Seems to me he's the guy who guided Sears to its current, disastrous state of affairs, and now he wants to take over? The shareholders should be chasing him down the street with pitchforks, hot tar and feathers.
Guide a company you want to buy into the gutter so you have a chance to pick it up cheap . . . saying "Conflict of Interest" doesn't begin to describe what this really looks like to me.
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With all the overtly questionable choices and suspect actions, it wouldn't surprise me if a few of the larger stockholders are warming up their lawyer-dialing fingers.
Brad
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https://www.youtube.com/watch?v=Jdf5EXo6I68 (https://www.youtube.com/watch?v=Jdf5EXo6I68)
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Where do they still have stores operating?
There's one about 2 miles from me in Livonia, Michigan (Detroit area). It was built in the 1960s as part of the now extinct Livonia Mall. The mall was destroyed 8 years ago but Sears was spared. I never see more than 30 cars in the parking lot, except during the holiday shopping season when there might be 50. I have no idea how the store has remained open for the past 20 years.
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Eddie Lampert ups his bid and gets his wish.
https://www.everythinglubbock.com/news/business/sears-staves-off-liquidation-stores-to-remain-open/1705583704?fbclid=IwAR2iDxmG6zxn5YQJTwgYm5LHmSIS-_Gjo3Yt5hppycjCc-VVEGg3HkpkXLQ
In terms of how to bleed a company dry, it's pretty ingenious... break the real property and retail sales side off into individual entities then have the Real Estate Side charge the Retail Side rent. The Real Estate Side shows property holdings and cash flow, remaining in the black. The Retail Side goes Tango Uniforn or reorganizes. Either way, it leaves the Rel Estate Side untouched with holdings readily available for liquidation and/or conversion to other retail operations.
The Real Estate Side stock remains stable and profitable. The Retail Side stock is liquidated and paid as dividends or converted to another holding via a sale or merger. Oh darn, Eddie and his hedge fund own a big chunk of both sides so it's a win/win.
The guy is a piece of slime but he definitely knows business strategy, especially when it comes to lining his own pockets.
Brad
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So I was musing about JC Penney's earlier in this thread, and sure enough, they're in hot water too.
https://www.wsj.com/articles/j-c-penney-struggles-to-avoid-a-fate-worse-than-the-sears-scenario-11548072000
Where does APS purchase its clothing? I tend to shop at Kohls and Target for most clothing, augmenting with a little bit of Walmart... sometimes online for smartass T-shirts, but mostly I prefer brick and mortar for my clothing shopping. Kohls pissed me off a couple years back though and I have started buying clothing at Bass Pro to put my money somewhere less leftist. I might find myself in a shopping mall maybe once every 2 years, mostly for gift shopping rather than for myself.
Gotta say, it's nice doing clothing shopping in a place that sells firearms. Checking fit with a concealed pistol just feels less clandestine/unwelcome (pistol never leaves holster, holster and belt are transferred to new pants).
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Where does APS purchase its clothing?
Lately I've found some good Red Head items at Cabelas. A couple of months ago, I found some cheap carpenter jeans at Rural King and at Menards. So far, the Menards "Old Mill" jeans are holding up better.
Aside from that, it's thrift stores for most items, and occasionally something from Wal-Mart.
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I'm mostly Costco, Walmart, Cabela's, and of late I've found good stuff at Tractor Supply.
I'm somewhat disappointed in Cabela's over the last few years in that I can't mail order clothes from them anymore - I pretty much have to try it on in the store. Their XL-XXL shirts seem to run the range from L-XXXL. The other places, I can pretty much just grab and go without trying it on and it will fit. Though I have learned at Costco to avoid some of the "hip" brands as even though they don't say it, they are a "fitted" cut, and I'm not 18 anymore. A "fitted" XL in some of those brands is like a medium on me. :laugh:
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I buy so little clothing it's hard to say where I shop.
Burlington Coat Factory is one I like, especially when I need a new button-up shirt.
Kohls I use for more casual clothing.
I suppose it's walmart or the like for undergarments/socks.
I can't remember the last time I bought anything from Macy's/JC Penney, but I have shopped at both of those.
I can't remember what suit store I've gone to, either, but one of those chains I've used, too.
I have so much clothing, though, I need to get rid of some, not be buying more.
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Let's see, I buy my dress shirts at Costco or Land's End. I buy my dress slacks at Amazon. Underwear and socks are usually from Costco. Ties are from whomever is having a sale. Most of my bow ties are from JC Penney. Rugby shirts and some casual wear from Amazon. Jeans and casual pants from Walmart or Target. Dress shoes are from Amazon.
I don't buy much any more in the way of clothes since I buy them and keep them until they wear out. I probably have 30 dress shirts and 10 pairs of dress slacks, and I wear them in rotation. I have over 150 ties, both conventional and bow tie. About 10 suits that I virtually never wear any more and about 10 blazers or sport coats. Some of my ties, suits and blazers are 30 years old, and were from the era of wearing a suit/blazer to the office every day. Now with business casual, I still wear a dress shirt, tie and dress slacks every work day and keep an emergency blazer in the office in case I need it. I am overdressed for my work environment, but that is how I like to dress in the office.
I have found that once I am solid with the sizes of a particular brand, Amazon is usually quicker, cheaper and has what I want in stock.
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Let's see, I buy my dress shirts at Costco
Oh yeah! My last dress shirt was from BJ's. (Competitor to Costco/Sams). Another one I use.
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I'm not a clothes horse - I've got a couple of good items for when I need them (suits, sport coats, dress shoes) but mostly I buy stuff at Kohl's, and sometimes Cabelas.
Now, when Kohl's first opened nearby - over 15 years ago - I viewed it as having "J.C. Penney quality at a K-Mart price."
But lately, it looks like on some items the quality is headed for K-Mart levels. Don't know where I'll go when/if it bottoms out.
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Socks and underwear from wallyworld. Bluejeans from Atwoods (farm store) Wrangler rip-stop cargo pants from wallyworld are my go to Summer work pants.
Winter I go with Wrangler Riggs Workwear cargo pants for work. First pair I bought at a Tractor Supply store to check fit and I've ordered a few pair off amazon since then.
I did splurge and pick up a couple pair of Duluth Trading Fire Hose Cargo Work Pants. I like them, they're comfortable and almost live up to the hype. Not sure yet if I'd buy more. I'll have to see how they stand up to firewood cutting season.
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I did splurge and pick up a couple pair of Duluth Trading Fire Hose Cargo Work Pants. I like them, they're comfortable and almost live up to the hype. Not sure yet if I'd buy more. I'll have to see how they stand up to firewood cutting season.
Are the front pockets suitable for pocket carrying a snubby .38? Wide and deep enough, with a wide enough mouth?
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Are the front pockets suitable for pocket carrying a snubby .38? Wide and deep enough, with a wide enough mouth?
Mine are. Hell I can pocket carry a G19 with optic in my Duluth Tradeing pants.
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Sears gets a new lease on life:
https://www.cnbc.com/2019/02/07/eddie-lamperts-deal-to-buy-sears-approved-retailer-given-second-life.html
Not sure if Lampert's Sears will be worth patronizing.
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If his history holds, he'll continue using the Retail side to bulk up and bolster the Real Estate side, then sell or liquidate the Retail side and hedge against the Real Estate side's value to get into something even shadier.
Brad
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If his history holds, he'll continue using the Retail side to bulk up and bolster the Real Estate side, then sell or liquidate the Retail side and hedge against the Real Estate side's value to get into something even shadier.
Brad
I'm starting to wonder when the bottom will fall out of the "real estate" side. Malls are increasingly depopulated.
Its been an interesting experience going to the mall (I think we go about 3 times a year.) Never crowded, except in Chic-fil-A.
I'm curious how much longer the "anchor" stores can hold on. I am almost always there for my wife to stop by Bath and Body Works or some such. We'll look in the anchor stores, but I can't remember the last time I bought anything in one. (As in, I can remember buying stuff there, but I'm not sure if those purchases 8+ years ago were the last time.)
I do know I haven't made a major purchase in a mall in more than 10 years.
How much longer will those real estate holdings have value if the profitability of retail space is shrinking?
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Most mall retail space is rented rather than owned so the mall's demise won't have much of an impact on SRE's booked holdings. The owned locations' land values are directly dictated by the current rent rate, which Sears can cook because SRE charges SRet rent to operate in the property.
I haven't looked into it, but I'd bet a good burger that most, if not all, the store closures were in rented facilities, leaving only self-owned locations where they can monkey the books to their heart's content under the RE/Retail corporate-sibling accounting setup.
Brad