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IRC Wealth CEO David Ragland on Sears' decision to file for bankruptcy and the outlook for oil.
Sears Holdings made it official early Monday morning, announcing the retailer has filed for Chapter 11 bankruptcy protection.
Banks have agreed to provide Sears with a bankruptcy loan.
Sears says that Eddie Lampert's hedge fund will provide $300 million in bankruptcy financing.
Lampert will also stepdown as CEO, but remain Chairman.
Under the bankruptcy plan, Lampert's executive role will be replaced by a three-person committee, though he will remain as chairman of the board. Mohsin Meghji, a managing director of the M-III Partners corporate advisory firm, was appointed chief restructuring officer.
https://www.foxbusiness.com/markets/sears-files-for-chapter-11-bankruptcy-protection
This is a sad situation. Folks from my era remember Sears was "where America shops". I have watched this unfold for several decades. One might wonder - what happened? One thing is Sears tried to reinvent itself beginning in the 60's. They dominated the hard goods market with their Craftsman and Kenmore brands. Then they tried to get into the soft goods world and failed miserably. Then they bought Dean Witter and Coldwell Banker in the early 80's to go with Allstate for financial services. While folks had no problem buying Allstate insurance at a Sears store they were not going to buy houses and invest their money at a Sears store. Allstate is a stock insurance company and Sears owned all the stock. However, in the late 80's and early 90,s the tail began wagging the dog. Wall Street told Sears that Allstate by itself was worth more than Sears and Allstate combined. For years Sears used Allstate as the cash cow for the failing retail business so in the mid 90's Sears had to spin off Allstate. The rest is history. Without Allstate Sears could no longer compete with that expanded hardware store from Bentonville, AK. This story has been evolving for over 50 years.
Quote from: supsalemgr on October 15, 2018, 07:39:53 AM
This is a sad situation. Folks from my era remember Sears was "where America shops". I have watched this unfold for several decades. One might wonder - what happened? One thing is Sears tried to reinvent itself beginning in the 60's. They dominated the hard goods market with their Craftsman and Kenmore brands. Then they tried to get into the soft goods world and failed miserably. Then they bought Dean Witter and Coldwell Banker in the early 80's to go with Allstate for financial services. While folks had no problem buying Allstate insurance at a Sears store they were not going to buy houses and invest their money at a Sears store. Allstate is a stock insurance company and Sears owned all the stock. However, in the late 80's and early 90,s the tail began wagging the dog. Wall Street told Sears that Allstate by itself was worth more than Sears and Allstate combined. For years Sears used Allstate as the cash cow for the failing retail business so in the mid 90's Sears had to spin off Allstate. The rest is history. Without Allstate Sears could no longer compete with that expanded hardware store from Bentonville, AK. This story has been evolving for over 50 years.
I was working at monkey Wards when they went under and Sears was supposed to be next in line, but they held off for a longtime.
I remember the first black eye Sears got when their auto section was ripping off customers, it was all over the news, 60s, 70s?.
Before that, it was common place to buy Craftsman tools with a lifetime guarantee, but who knew, it was the life of the store, not the tool.
I believe it has something to do with K-Mart buying them.
Quote from: Sick Of Silence on October 15, 2018, 11:37:34 AM
I believe it has something to do with K-Mart buying them.
I think Sears bought K-Mart, but your point is valid. Combining two failing retailers is like dogs chasing cars and three foot putts for par. Sears caught the car!
https://en.wikipedia.org/wiki/Sears
QuoteIn 2005, the company was bought by the management of the American big box chain Kmart, which formed Sears Holdings upon completion of the merger.
Thousands of blissful childhood hours spent dreaming with their Christmas Wish Catalogue...<sniff>