https://www.bloomberg.com/news/articles/2018-07-31/berkshire-backs-sears-property-spinoff-with-2-billion-loan
15 replies (most recent on top)
@2zlh- COrrect!! And with an infusion of cash flow from Buffet to Seritage they do not have to wait as long to develop properties and get cash flow from the rent to restock the Seritage coffers. They now can excelerate the closings of Sears and Kmart stores or totally shut it down and buy the remaining properties in BK or since Eddie owns the debt he could just take them as payment. The end is near.
Agree with most. This is a bad sign and likely shows that the remaining Seritage properties could be closing sooner than later. That's been a common rumor for awhile that the reason SHC has been kept alive in its current form is to allow SRG time to develop more of its portfolio and become less dependent on Sears.
@1var- Why would Eddie do that? Eddie is only using Sears/kmart properties to enrich Seritage. Eddie could care less if SHC goes down the tubes. As a matter of fact, that is the plan. Seritage has been the play the whole time and one of the reasons Warren Buffet did not invest in SHC but Seritage
@1lew Who implied it was good for Sears? Read the articles. It is strictly so Seritage can re-do the stores to rent for higher amounts. This will only increase the speed of closures.
Question: What's to prevent Eddie from secretly funneling that loan money meant for Seritage into Sears? For all we know, he could be giving Warren the finger behind his back.
The loan was for Seritage and not for Sears. They will close more Sears stores and redevelop more properties. Remember, Sears is paying below market rent to Seritage. If they can redevelop the property with someone paying market rent for the space they will do it in a heartbeat.
5% shld rebound this morning for additional store closures. Not that economy of scale or shipping logistics mean much to anybody
That big loan Buffet gave it intended for "seritage" I don't see how this helps Sears in anyway? The stock really rose would of been a sweet way to bank some $$$, but at this point Sears doesnt seem to benefit out of this.
@Uqigxgo-1wec Thats a very interesting input Buffet infuses cash and possibly why not close more and focus more on Eddies big investment its coming ladies and gentleman.
The Edgar filing shows $1.1B of the $2B was used to pay off the previous loan it replaces
Good analogy. Dragging SEARS around from month to month is like dragging Bernie's corpse around and making it seem like he's alive. Maybe next month a voodoo curse will be placed on SEARS and it's carcass will dance around whenever music is played much like the sequel Weekend at Bernie's 2.
Obviously this money is to redevelop more REIT properties. Look for another 50 to 100 stores announcing closure in the next month.
Nope. This money will just make it easier for Seritage to make their properties more attractive to other potential customers who will pay more money than SHLD.
I'm guessing this $2 billion isn't going to help out Sears at all, is it?
All for redevlopment. At a 7% interest rate.
But seriously, who in their right mind borrows eddie money?
Taste like chicken