It’s not my intention to start another debate on Eddie’s role in the downfall of Sears on this thread, but instead want to point out the irony of the fact that the man who was in charge while all of the mess happened is now still holding all the cards in his hands, and the potential survival os Sears will be, mainly up to him. This article was an excellent read to me, so here you are:
https://www.usatoday.com/story/money/2018/10/15/sears-bankruptcy-eddie-lampert/1647031002/
I have read the bankruptcy filings and they state and have been approved to find buyers for each division and brand names. As CEO Eddie couldn’t buy anything being put up for sale. The judge has to approve the amount of the offer to allow the sale to be authorized, they do not have to disclose who made the offer. His lackey that is also a part of his hedgefund and all offers will be quietly disclosed to Eddie so when he makes his offer right before they see the judge to get approval his offer is the highest. He purchases divisions and stores and they are his debt free. Read the letters that have been sent to employees, they are looking for buyers for all divisions as a whole or individually. The money paid for each division will then be ordered by the judge to pay off debtors that are waiting for their due. What nobody truly wants to buy for a good amount will then go to liquidation.
Can someone answer why Leena Munjal has a job?? Chief Digital Officer. LOL. The website is completely unshopable. What a disgrace. The bankruptcy plan is more of the same. Close stores, layoffs, cut costs. The incompetency is astonishing.
Well Eddie is the only reason both have been around the last 10 years so what would you expect. Any sane investor would have walked years ago.
@nyg The banks will block Eddie and demand Chapter 7 liquidation to get as much money as they can. All the debt does not just go away. If they are not made whole or at least accept a negotiated settle amount they can and will force Chapter 7 liquidation. Read the details of the Chapter 11 negotiations and filing.
Eddie is now in a position to buy divisions of sears for pennies on the dollar and when they stores are put up for sale he is able to purchase them with a judge approving the sale price and he gets the stores without any debt. It’s already been reported that he wants to buy the 400 best producing stores, Kenmore brand, and Home Services. He wasn’t going to be able to while he was the CEO, now he has one of his lackies as 1 of 3 CEO offices and he will always know how much he has to offer to buy and have the highest bid. Eddie will walk away with exactly what he wants and that is the profits without the debt. He sold off the brands and divisions he didn’t want, that’s why he would give Sears loans, to have time to sell off what he doesn’t want. He’s had a plan and he’s in more control than any of the 3 Sharing the CEO office. Enjoy when he owns everything he wants without the debt.
Sorry to disagree with you but the banks and the bankruptcy judge hold all the cards. Eddie is just one piece of the puzzle. Do you actually think the bankruptcy judge is going to approve Eddie buying the company after the way he ran the company into bankruptcy? Do you think the banks are going to let him do it all over again without them getting their money first? I don't think so. The banks are going to get their money first period. I can hope for the best but I am a realist.