https://www.bloomberg.com/news/articles/2017-02-10/sears-soars-on-plan-to-cut-debt-pension-burden-by-1-5-billion
I sure hope that the managers of my 401Ks are not investing in this nonsense.
4 replies (most recent on top)
My thoughts were he was just making a big move to keep the stock from falling below a dollar so the stock isn't delisted before the two year look back in July when Seritage is safe and they can file bankruptcy without all those properties they sold going into the bankruptcy.
It's a dirty company.
Anything to limp along.
I'm waiting for them to cut commissions next.
Another poster stated that they aren't receiving battery inventory which implies the battery manufacturer that makes Diehard for Sears may have stopped shipments. That will rapidly drive the value of that brand to 0.
It is intresting that the stock skyrocketed at opening and has been going down since then.
Disclosure: I have no backing info for the following statement and it is purely my opinion. If anyone has any information that that supports or opposes my opinion I would greatly appreciate you sharing...
My theory is it is a pre bankruptcy move. He need to keep the business going long enough to finish selling off the pieces. When he announced that Craftsman was up for sale he also announced the Diehard and Kenmore brands were on sale. So far Craftsman has been sold but there have not been any announcements about buyers or potential buyers for them. I believe that Eddie wants to stave off bankruptcy till he has sold every piece of the company that he can. Better at least for him to chop it up and sell it piece by piece and use the money to pay loans that was given to Sears by other companies he owns, essentially using the money to repay himself than to have it be part of the bankruptcy where he will not have same control over the sale and his lending companies will be on a list with others waiting and hoping to get some of the money owed to them.