Thread regarding Sears layoffs

The guy doing maintenance on several district stores was laid off during the bankruptcy, I believe this was company wide. We had a serious rat problem before the store suddenly and quickly closed.

someone here asked a good question. it appears that no to little money is going into stores with reports of escalators not working and no maintenance or upgrades taking place. But with the A&E homes services a lot of money is being spent to maintain a fleet of service vans in repairs ,gasoline , insurance, parts inventory and good salaries for the employees. where is the money coming from to keep this division going and retail is cut off .

corporate veil piercing applies to all corporations, not just public. 50% of the reason corporations get created in the first place is liability avoidance, the other half is taxation. I know plenty of guys who own over 100 empty shell corporations just so their funds are hard to track, another 100 with just 1 asset, and they're not worth anything like Eddie. judges pierce their veils just fine, the hard part is tracking down all their assets.

None of this matters. No one cares anymore. A&E is done. Any techs, or support staff, COE, Routers, etc.... It's over. It's just so obvious to those of use who are still somehow working. The support staff for A&E are working from home, and we don't give a c-ap anymore. Inept management is still trying to 'assert' their authority over us, through nasty and threatening e-mails. But those of us who know better are just riding this gravy train, getting a paycheck and medical benefits until this s***show is over!! Tomorrow is 6/29/2020, and somehow.... WE ARE STILL IN BUSINESS!! Wow!! Who the heck is paying the bills for all of the broken down van repairs, and the salaries of all of the remaining employees?? Where is the money coming from??
The end is coming.... There will be no warning. Expect to wake up one morning and find out you're done through a personal e-mail, or a personal phone call. Your VPN has been TERMINATED!!! Good bye!!!!! Bwahahahahahah!!

@1qpo+15FysVKC - the veil piercing only works if the corporation is publicly held (issues stock). In the case with TransformCo, which is privately held, the owner to pretty much can run a muck all he wants without consequences.

A tech was shot while putting his bag in the truck. Luckily (from what was said) the bullets broken his phone and snapped his keys.

TransformCo, as a new undercapitalized company owned by ESL which is much more of an alter-ego of Eddie is a lot easier to pierce the veil of than Eddie, who was a public albeit majority shareholder. Sen. Elizabeth Warren is going to have a field day.

1qpo- great post !!! Probably legally and technically correct.
However, Judge Drain found no reason to "pierce the veil" for
SHLDQ.

Now that TransformCo owns the assets (with the blessing of The Court) and continues with the orderly dissolution of the assets and the "go forward stores", piercing TransformCo's veil seems unlikely.

Corporate veil piercing may be done where the corporation is the mere “alter-ego” of its shareholders, where the corporation is undercapitalized, where there is a failure to observe corporate formalities, where the corporate form is used to promote fraud, injustice or illegalities.

Piercing also is done by courts in order to remedy what appears to be fraudulent conduct that does not the strict elements of common law fraud. Specifically, it is used as a remedy for “constructive fraud” in the contractual context. Simply put, if a court becomes convinced that a shareholder or other equity investor has, by words or actions, led a counter-party to a contract to believe that an obligation is a personal liability rather than (or in addition to) a corporate debt, then courts sometimes will use a piercing theory to impose liability on the individual shareholder rather than a fraud theory.

Another ground on which courts pierce the corporate veil that we identify is the promotion of what we term accepted “bankruptcy values.” In particular, bankruptcy law strives to achieve an orderly disposition of the debtors’ assets, either through corporate reorganization or liquidation. One way that bankruptcy law achieves these goals is by preventing shareholders from transferring corporate assets to themselves or to particular favored creditors ahead of creditors in times of acute economic stress. This result is accomplished in the context of a formal bankruptcy proceeding by invoking the doctrine of equitable subordination as well as by the bankruptcy trustee’s power to avoid and set aside preferential transfers and fraudulent conveyances. Outside of bankruptcy (and sometimes in the context of bankruptcy proceedings as well), the goal of eliminating opportunism by companies in financial distress is accomplished by disregarding the corporate form.

Eddie created different LLC's, then busted up the property in Round Rock into 3 parcels. 2 are just land and the other is the building with the parking lot. Then he sold all 3 of those properties off to one of the LLC's in 2019.
This way, when Transform really does go belly-up, he's still sitting there holding the deed to $14-18M property in Round Rock Texas. I see that he's also done this same thing with other locations. It's a shell game so when the main company hits bankruptcy again, he's holding the title to all the properties under another business and they can't go after those.

STAC was shut down in early April. The company claims it was due to the Covid-19 situation, however, that doesn't add up since there are still other lines of business still working in the building in Round Rock. Those that are still there have been there since STAC was shut down.
The company has pushed out the "come back" date several times, the last time, they pushed it out until September.
The higher ups have been trying to shutter STAC for years and finally managed to neuter how STAC functions enough to justify getting rid of it. The last couple of years has just been STAC acting as a cushion until the fools that jumbled tech hub together could convince management that it was functional and ready.
I knew we were on the way out when some know-nothing TM got on the phone and started trying to tell me (with 20 years of doing this) that his tech with 2 years throwing parts at appliances knew more than I did. When that stuff got to be common, it was just a matter of time before stupid prevailed.
As far as I know, Transform still owns the building in Round Rock, but I heard rumors there were people looking at it (to buy) back around the first of the year.

Not my problem anymore, retirement is nice but I'd have rather done it on my own terms than theirs.

Complete shambles, and a joke. Running maybe 1 to two calls a day on average and they want us to work mandatory 6 days a week... Stac was closed down completely, months ago due to the fabulous tech hub app that never fails. Round rock building was sold last I heard.