Why was the last closing list so small? What exactly is Eddie's angle, here? Most on this page were expecting a huge blowout of stores after Christmas/New Years, but we barely get 1 Kmart, and 2 Sears. The liquidators should be free in about 1 Month, so why such a weak closing list? Any theories? I was expecting at least 70-80 stores, not 3 LOL!
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big list happen on the quarter the quarter isn't up till the first of February
As was mentioned in a previos thread, it's no longer cost effective to operate multiple DC's with stores so few and far between. Cross-format deliveries continue from the remaining DC's, but logistics is for the most part being handled by UPS, grocery wholesalers, and, LTL carriers(shipments from closing stores).
Well excuse me! I was laid off last year when my Kmart closed so I guess I missed that one. 🙄 just trying to offer a thought, I wasn’t looking for an argument
It’s not just possible. There have been cross-format deliveries since they moved the RRCs into the RDCs last year.
Well the rumors all seem to point to 2 more rounds. But then again who knows? Time will tell...
@1ahu I hope so, sir. I'm trying to be patient, but the joy of the anticipation of these turkeys finally ending is hard to control LOL!. I share your confidence that we will finally get our wish soon! FIngers crossed, can't wait!
It is possible that they are doing cross format trucks. There are still a handful of sears stores in Washington, so they could through the Kmart store on the Same truck. Years ago they started doing multiple stores on a truck for my Kmart district in Oregon, it’s possible they are doing that for the random Kmart in Burlington, WA
My theory is that this list was "small" because the next big list that will come out will be the final one. Like others have mentioned, you'll have to be patient, but I definitely think all stores will be closed within the first half of the year. Give it a little time, but I'm thinking Sears and Kmart will no longer exist after June.
The turnaround is taking hold. The word is that sales were significantly higher than expected and the addition of Hometown to TransformCo is driving real growth. Customers also were very excited to shop at Sears and Kmart for the holidays and cast a strong vote of confidence in the future of two iconic brands.
@12WRmbmy-1wxl Ya, I Know! Sears/Kmart must be like a pet project of his, or something that turns him on. I would have pulled the plug on both those irrelevant, id–tic brands ages ago. Cash out, and live happily. Who in their right mind shops at those stupid brands now anyway, even online? Certainly not me. There are companies with far better deals on whatever Chinese made c-ap that Sears/Kmart sells anyway.
But as you stated, if he wants to keep losing Money on those 2 failed experiments, then it's his problem not mine. If I was him, however, I would close both those 2 brands 100% YESTERDAY. I'm not losing Cash on some Charity case, just to feed some old boomers' nostalgia because he grew up with Kmart. I grew up with fax machines too, I don't think that means we abandon email and go back to faxes. Things change, life moves on. These brands are toast in this age. They are as significant as fax machines. A cute novelty for some boomer collector in Wichita Kansas somewhere, but not relevant to real life, in any significant way.
Ya I simply don't get it. OK, maybe drag out the Sears side, but at this point, in 2020, Kmart is absolutely irrelevant to anything. Most younger people don't even Know what it is when I ask them, as most zip codes in the country are nowhere near one. At the very least he should pull the plug on that silly brand (which was basically always a joke anyway) and focus on his online presence or small format Sears or whatever. There is absolutely zero reasons on Earth to have Kmarts in places like North freaking Dakota, for crying out loud. 1 random store with no other Kmarts or Sears within like 500 miles of it, making shipping a very inefficient proposition. Also the other random states like Montana, Washington (state), North Carolina, and whoever else only have like 1 store each. He has to be losing Money on just stocking the building with product. But hey, if he likes losing Loot, on these id–tic, far flung stores, then have at it! His loss, not mine..........
Let's be real here, all Eddie knows how to do with Sears is to turn $200 million into a quick $0.
@hss I hope the next announcement is big. These slow, teeth-pulling drib-drabs are kind of boring. I like those huge lists, more fun that way!
All the stores will close. Vendors are done with Eddie. Vendors got partially paid which does not help if you have operating expenses and labor to be paid.
No pay, no merchandise. I side with the vendors and suppliers. Stay away from Eddie
It may have to do with tax accounting more than anything.
One other possibility is he restocks the stores with the $200 million in diehard money, then liquidates them. Since they jack all the prices up to begin with both Eddie and the liquidator are probably making good money doing this since a closing Sears generates more traffic than normal, I’m sure they are down to bargain basement leases. This could turn $200 million into a quick $400 million. So he and the liquidator could squeeze a $100 million profit out.
I suspect many variables at play here. First, Feb is a slow month in retail. Assuming operating costs are smaller than the value that can be extracted in a liquidation sale, it may be worth holding on a few months for a better seasonal timing. Also, AFAIK, Kenmore is yet to be unloaded, and its value would be smaller if there are no Sears left to support the brand. This assumes that the Kenmore brand still holds some value.
Just thought I'd point out that the round announced back in August has now ended, so over 100 stores have contractors available to be closed as that Labor Day weekend announcement had. They likely don't want another big round, and want to keep trying to drag this out, but one thing is true (you're all going to down vote this when you read it), the closures this week mean that "rumor" came true- there was another list of stores "announced" to close, both for Kmart and Sears. It's a small list, but this week did see more closures, so whoever had that inside information from Abacus, thank you for posting it, as expected, more stores were announced to close this week. See? Now you're going to down vote this, because the original poster of announcing more closures was proven right again, and you people hate it when people are proven right.
Someone mentioned the liquidators might not be getting paid? Maybe that’s also a reason for delay in the next list? I mean why work for a company if you might not get paid.
One would imagine that they are very close to the end, given the lack of new merchandise in even the "best" locations. It looks like much of the delay in shutting down everything is related to the shortage of liquidation subcontractors.
@ids Good point.
@OP My friend, ever hear the expression "A WATCHED POT NEVER BOILS"? Be patient, it will come. Do you usually get Lucky on First Dates? Maybe occasionally, but usually not, right? But after the wait, it's soooooo worth it. Be patient, it will come.
Watch baseball? When a batter tries to hit a home run, he usually strikes out. When he is patient, and swings normally, it will come. If a Boxer (other than maybe Mike Tyson or something LOL) tries too hard for the KO, he usually leaves himself open to a counter, and can get KO'd himself. But if he stays patiently behind his jab, it will come. Do you see Roger Federer trying hard to serve aces? No, but they come.
Be patient, my son. It will come......
Was it really a list though? More like a few one-offs that usually come between lists
No clue here, buddy. I would have at least expected all those random, far flung Kmarts in places like Montana, etc., to be gone. Someone even posted a link to Minot North Dakota's lease ending in November 2019. Yet they still oddly linger on. I have no idea what his angle is. He stumped me here, I thought, as you mentioned, we would be unloading about 100 or so, come January. Strange.......