Thread regarding Sears layoffs

My question is, is the board of directors deliberately delaying the vote on the Kenmore/SHIP sales, in order to force the bankruptcy? Eddie might have expected that they were puppets that would rubber stamp his offer. But they could recognize that their necks are also on the line if they allow ESL to strip the assets. If they force a cash-flow issue, then it will force a bankruptcy, and the courts will take over.

@tyr- The only problem with your theory is that Eddie or something Eddie has a stake in are the creditors. So Eddie would be forcing BK upon himself, which is exactly what will break him.

The vendors may be able to force BK but there is always some company willing to ship goods as evidenced by all the off brand cr*p that is in the stores.

Eddie says if bondholders don't convert to stock or take a haircut of 75%, he will file bankruptcy.

@VmYwbMx-ikp i think the whole 2nd quarter sales really hurt the company big time burning half a billion in 3 months is just insane. So as you said calculations are off especially with the Kenmore deal that Eddie thought he would get didnt (check the timing) on holiday season. He probably didnt expect the pension to get invovled here honestly. Which that halts cash that could of been infused to run the holiday.

So now Eddie doesnt want to loan anymore money because what else can he take really. Sears is in a very tight situation BK can really happen soon.

Stock is $1 its close to becoming a penny stock at this point. In October a big payment is due and not a lot of left over cash is left. This next weeks are going to be super interesting at this point.

His plan no longer matters, he miscalculated and the debt is no longer manageable with the decline of sales.

Creditors can force bankruptcy onto the company. Either a voluntary restructuring (which is what ED submitted and is almost equal to BK) or forced bankruptcy by creditors. Last options are either a new loan somehow or volantary bk filing.

The company does not have the money for chapter 11, there is no reason to file that. This will go straight to 7 and dissolution. You do not have to file chapter 11 first and they won't

Here's what I think has been his plan along.

Just throwing this out there from hearing things over the years.

Reduce store footprint to about 400-450 sears stores on east and west coast and a few in the middle

Kmart would be gone. Could even close out this year to get quick cash flow, while selling off the billions of dollars with of property.

Shc cannot file bankruptcy within one year of a REIT sale. So that pushes this into next year.

He will take the company private followed by a sale to a European company wanting a USA footprint.

He will be the Landlord and also owner of kenmore appliances for those stores

But I don't know any of this for sure, but just rumors.

Whats a carrier?

Never say never, any company can enter bankruptcy. Heck, five years from now, Amazon or Apple could file. Very, very, VERY unlikely, but no company is invincible. On the flipside, SHC is almost certain to enter bankruptcy. The unlikelihood of them NOT entering BK is slim to none.

It's going to be a tumultuous and probably a futile task to try to keep this pig out of bankruptcy. At this rate, Lampert will end up broke before this thing even has a shot of getting its head above water and guess what? It will still plunge into bankruptcy. There are just too many obligations and the cash burn is showing no signs of stopping. Best for him to come clean before then and just accept the fact that there will be tons of prying eyes looking into his conduct.

The end game is Eddie in jail. The feds are investigating him right now. If you doubt this, take a look at the carrier.