Anybody who does should know that Sears won't see Christmas. No way.
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Let's think of the perfect plan. SHC declares BK in the beginning to mid October. All stores go into liquidation for the next 3-4 months. Which means that this Christmas will be the best Christmas in over a decade or more. With that influx of cash they can pay back the creditors (eddie and his companies) and then shut it all down.
Perfect plan to get cash to pay off the creditors (Eddie) at the perfect time of year to have massive sales and an influx of customers. After Bk the real estate and any other assets (Kenmore, Home services, part direct etc.) can be bought for pennies on the dollar.
Thoughts?
Even if they closed down tomorrow it would take at least 4-6 moths to wind down operations and liquidate stores. So they will see Christmas and maybe into Feb-March but that is the end.
@VmJUozr-arg it got to 500 stores even and they closed, no equivalent to chapter 11, straight to 7 so to speak, just like they will do here
@VmJUozr-rpj no, chapter 7 is simple and cut and dry. we are broke, it's over, we are closing, liquidation and there is no requirement to file for 11 first
Sears Canada did not fully liquidate until about seven months after the initial bankruptcy filing.
@VmJUozr-cah Serious question. Do the rules apply to Chapter 7 also?
You are forgetting about the clawback rules around chapter 11. Just because a transaction is complete doesn't mean it can't be rolled back if bankruptcy occurs within a certain window.
cyu: I'm sure Eddie is trying to figure out a way to do the Kenmore deal without having to give any money to the pension plan. Once he either pulls this off or gives up on it, there won't be any reason to keep Sears/Kmart going any longer.
Oh, Sears will see Christmas. The wind down even if they file tomorrow will take that long. But the wind down won't begin until Eddie tries some ridiculous legal maneuvers to try to grab as much of the assets as he can.
I don't. Remind us of the timeline.