Perhaps there is a legal reason why the employee discount must be removed. In a bankruptcy the creditors and the Pension Benefit Guarantee Corp is going to want every dime they can get to offset deficits. They may not want anyone getting a bigger discount on items that will need fast liquidation. Maybe there is some oversight over the whole operation that is pulling the strings now, and Eddie may not be calling the shots at this point. The stock has fallen and stayed below the 1 billion market cap. The PBGC might be giving some input at this time. It does seem trivial. Either way a few dollars saved on employee discounts is irrelevant when stacked against a 500+ million loss in the current quarter. Strange, why bother
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Eddies salary is $1.00. He makes his money on the real estate and buying debt with interest
The loss this quarter will be close to $1 billion. The shock and awe from such a loss will be immense. For a start all the 2017 burn rate models that the creditors and suppliers use will have to be updated from the current consensus around a 2017 loss of $1.5 billion up to $3 billion.
Is Eddies pay getting cut to minimum wage in liquidation? Seriously folks
No judge is going find an minimum wage employee getting a 5% discount unreasonable compensation when the same job pays 2 dollars an you more at Walmart. Seriously.
Just found out today about the assoc discount ending & it feels like the final straw for me. I found this site about 5 min ago so I won't post before reading since I'm sure I'd just be repeating others points.
I don't see how liquidation would necessitate ending the discount entirely. The closing stores just wouldn't accept the discount. You see it in the fine print on those yellow signs for other chains closing. No coupons, no employee discount, no further reductions, etc. This is just the final slap in the face from Sears. I don't purchase too much there but jeez. They can't give what essentially is the frequent coupon discount to the employees?
Maybe. It still doesn't make sense to me. They would probably earn more with an employee paying for merchandise with their discount than what they would receive in liquidation. In liquidation they sell in bulk and the price per item is extremely low.
Interesting point, thank you