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02-07-2019 04:42 PM
Sears has gotten out of bankruptcy, a surprise to many. Here's the article, from CNN Business:
White Plains, New York (CNN Business) Sears lives.
Bankruptcy Court Judge Robert Drain approved the sale of most of the retailer's assets to a hedge fund controlled by Eddie Lampert, the company's chairman, for $5.2 billion. The decision will keep 425 stores open and save the jobs of 45,000 employees.
In reading his decision Thursday afternoon, Drain rejected arguments from a committee of creditors, including landlords and major vendors, who had urged the court to shut the company down and liquidate the assets. The creditors, who are owed more than $3 billion by Sears, argued that closing the company was the best way to return the most money. They also argued the sales process was unfair and set up so that no one other than Lampert could buy the company.
Attorneys for Sears and Lampert had argued the sales process was fair and that keeping the company open would be better for all involved.
The 133-year old company was once the largest and most important retailer in the nation, and the largest private sector employer. But it has struggled for decades, losing business not only to online rivals but also to big box retailers who offered lower prices and a wider selection of goods. It had lost $12 billion since its last profitable year in 2010 through its bankruptcy filing last October.
02-07-2019 04:57 PM
Mr. Lampert's long-held goal to become 100% owner of Sears has succeeded. Now he'll sell off remaining assets, primarily real estate and leases, while maintaining the fiction that he's trying to save the retail company. I don't think for a minute that he's in it for the public good or the jobs of remaining employees; he's in it only for himself.
02-07-2019 05:16 PM - edited 02-07-2019 05:20 PM
@ValuSkr is right Lambert was never about saving Sears only lining his own pockets with money from real estate and leases
02-07-2019 05:24 PM
There is so much water under the bridge with Sears that I can’t imagine it would survive in the long term. Hopefully the stay of execution will help employees transition to other more promising employment. LM
02-07-2019 05:28 PM
I agree with all the comments that Lambert is in this for his own purposes. And unfortunately this is just delaying the inevitable. Sears will never make a comeback for the long haul, IMO.
02-07-2019 06:30 PM
Each section of the business will now most likely be pulled apart and sold off piece by piece to the highest offer for the best return on investment for the hedge fund. The investors of the hedge fund will want the maximum return.
02-08-2019 06:54 AM
What a sad, sad situation. Poor Sears. Dying a long, slow painful death. Another old store which was part of my family's life which we all enjoyed will be gone.
02-08-2019 01:07 PM
Mr. Lambert certainly has this set up to help him, not the Sears company. However, it never would have gotten to this point had Sears continued with what once made them a great retail company. No one ever went to Sears to buy fashion; people shopped there for quality basics such as almost indestructable children's clothes and work clothes for men. My children still talk about their Tough Skin jeans!
Craftsman tools were once dependable forever; now they break rather quickly.
Whoever made the decisions to change Sears are the people responsible for its downfall.
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