In case you haven't figured it out from the delivery suspension or Eddie's emergency forking over cash out of pocket (which he pretty much never does), Transform is out of cash. It's got nothing left in the piggy bank, maxed out all its credit cards, and is living from loan to loan, because no one else will lend to them. This isn't all a conspiracy. Eddie really is this dumb.
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I’m going to argue that this wasn't really Eddie’s plan all along. I think he always knew that it was a way out if his ridiculous schemes didn’t pan out. The first one was the “lipstick on the pig” scheme to paint a few walls, and put “Sears Essentials” or “grands” over Kmart doors and the customers would stupidly flock to it thinking they were better than a Target. WRONG
Then there was the whole SYW fiasco first trying to make it “shoppertainment”, then the points give aways, and multiple other attempts to make SYW appeal to customers. So many other stupid stunts he tried (innoval, data centers, laundry mats, offshore development contractor....) before finally looting what was left for himself.
Seritage was the first bold step in the direction of looting assets. Any efforts to boost the Sears image was done so in hopes of increasing the sellability of assets at that point. Yes this was a strategy, Eddies exit strategy, but not the initial plan.
The $250 million cash infusion had an outside investor, so Fast Eddie isn't just raiding his piggy bank to keep this mess afloat.
When I was working there last year in appliances and mattresses it was very common especially after the bankruptcy to take orders for delivery then have the delivery pushed out multiple times and the customer would finally cancel, they were obviously having us take orders for items they didn't have available it wasn't just a now and then occurrence it was a majority of the orders every week was non stop mad customers calling all day about delivery being pushed out a month after already waiting 3-4 weeks, they did get most the availability figured out after February but by then all the sales people were so far in draw pay they didn't care to try anymore or quit
That would explain why customers are having difficulties getting their large appliances delivered to their homes. Read Sears's Twitter page. One customer never received his large appliance and it was cancelled without his permission. Another customer returned his large appliance after Labor Day and was promised a full refund in 7 to 10 days. Guess what? He's still waiting for his refund!
This type of business conduct raises red flags at the IRS. Hopefully, they will investigate Eddie Lampert's hedge fund.
I would not be surprised if a criminal investigation is launched.
Eddie can't buy off the court of public opinion. Future investors are watching his reckless business decisions and staying away from him. If he can't manage a large retail company that tells investors all they need to know.
Naw, he’s brilliant. His property management company is making a k–ling off the demise of Sears, and this controlled liquidation keeps property from flooding the market all at once. Plus, he gets to write off the losses on his taxes, meaning he makes even more money on the property.
And since he’s a real estate broker first and foremost, this was his plan all along. ;)