Thread regarding Sears layoffs

Correction, looks more like it was half a billion per quarter. But who's counting at that point, lol.

@1pib A lot better than the years of losing about a billion dollars a quarter, at least.

4% on 1.2 Billion. Is that good?

Lots of this is simply bankruptcy costs. Outside of the reorg they did $1.2 billion in sales and would have profited $47 million. Deduct the interest expenses and reorg fees to get a better idea. Technically speaking after the reorg and once they cut some of the administrative expenses by realigning for the smaller store base the company would theoretically be profitable,

What Eddie’s goal is or isn’t is irrelevant. The fact remains that if the creditors are correct in their allegations, they are guilty of malfeasance for continuing to loan him money. They are unsecured and knew or reasonably should have known the risk going in. The fact that thry are just now realizing it and are attempting a desperate last minute objection makes them look like fools. This is all far too complex and technical to be litigated in two weeks, so the sale will be approved and they will have to continue in the SDNY. They’re going to loose all or nearly all of their money either way, either by Eddie winning, forcibg liquidation or in attorneys’ fees.

But that's not Eddie's goal. Eddie's goal has always been f--- the creditors, put himself in first place through underhanded and unethical means, siphon off funds placing them out of reach, then use bankruptcy to finalize it all. That's the creditors' whole complaint.

Investment in subsidiaries is stock in other companies that SHC holds.

Intercompany payables do not show up on a 10K or a 10Q because they are not typically availible for the public to buy. They are debt within the company, such as the retail BU owing the KCD BU for merch.

The deficit you are seeing baloon has done so as a result of the DIP loans and the debt they have created.

You are basing all of this on the fundamentally flawed assumption that the goal of BK is liquidation. It is not, expecially in Ch11 cases. The goal of BK is to get the greatest return for the creditors. If that means the company liquidates, then that’swhat happens. In the case of SHC the BoD has decided that selling the business off will generate the greatest return.

What a FUBAR of GARGANTUAN proportions! Is this from a CFO that cannot even add simple numbers! Note: Sears holds lawyers having hourly fees in thousands of dollars in addition to a CFO getting a HUGE million dollar bonus!

The monthly operating loss is a joke. If you compared that with "CASH DISBURSEMENTS" vs "CASH RECEIPTS" you can easily see why. Because the goal of a bankruptcy is to liquidate receipts should actually exceed disbursements; BUT even ignoring that you wouldn't have BILLIONS of dollars in difference if your operating loss was so small in comparison. At one time that would be called fraud.

BUT let's look at the BIGGER picture. I was stunned looking at this Balance Sheet! To make sure I wasn't mistaken I opened their last 10Q for comparison that gives ... their own CFO's totals to Nov 3, 2018.

So this Balance Sheet to the court shows that numbers presented in (millions). Check the column header if you do not believe! Under that there are two line items I don't recognize as having been included before. Under "ASSETS" they have a total of $31.4 Billion and under Liabilities a total of $ 34.2 Billion .. Plus $ 4.4 Billion in Liabilities Subject to Compromise. That is $ Billion with a "B". Do you see those,

Problem is.. the 10Q showing assets in Nov 3rd/ 18 shows only a total of $ 6.7 Billion in "ASSETS" and "Liabilities" of $ 7.4 Billion; also excluding $ 4.4 Billion in liabilities subject to compromise.

So... how could their ASSETS (and not they are now in disposable mode where assets are being disposed) suddenly swell from under $ 7 Billion to over $31 Billion ??? Obviously they couldn't!

About those line items; and curious that these NEVER showed on 10Q or 10K filings...

The 1st is under "ASSETS": "Investment in Subsidiaries": $26.5 Billion! I don't know what that designates; but without a breakout I assume some type of fraudulent conveyance to shield some assets from bankruptcy; but let's simply ignore that. ... BUT regardless $ 26.5 Billion .. with a "B"! That single item is orders of magnitude bigger than any other line item under assets!

The 2nd is under "Liabilities" as "Intercompany Payables" which I have seen listed in some bankruptcies: $27.1 Billion with a "B"!

I suspect both of these line items have too many zeros... at least 3 to many zeros! It's a good thing they are similar in size to almost cancel the error out! There is no way a company in bankruptcy having less than $7 Billion in assets in Nov / 18 suddenly as $26 billion in assets held by subsidiaries in Jan / 2019. That is just nonsensical,

As well; note at the time of bankruptcy Sears claimed to have a deficit of about $ 4 Billion.. which has now swelled to over $ 7 billion. Even in the Nov 10Q the deficit was only listed as $ 5.3 Billion (and how can you explain that based on their "stated operating losses" file with the bankruptcy court .. (They have now field at least 2 if not 3 such documents showing under a $125 million dollar loss in each filing!.. YET the deficit balloons in orders of magnitude greater...).

As I noted above this last 10Q goes to Nov 3 / 2018. the filed on or about Oct 15 / 2018 .. so that 10Q was actually filed post bankruptcy. Being curious I want to peek at the last 10Q or 10K pre-bankruptcy filing.....

I have that now; filed 2018-09-13. Summarizes data to Aug 4, 2018. Total Assets $ 6.9 Billion. Total Liabilities $11.3 Billion; with no line item showing "liabilitiies subject to compromise". Total Deficit $ 4.4 Billion.

.. Naturally this "MOR" completely mis-states Assets and Liabilities as being above $30 Billion is total nonsense. Since these two "new" line items are similar in magnitude the simplest thing is to simply cross them out. I'm not going to try to copy and paste into a worksheet. I suspect it would come out to a similar total deficit as listed: about $7.2 Billion.

Anyone would agree a deficit of $ 7.2 billion is a HUGE difference with a deficit of the $ 4.4 billion claimed at the time of their Oct 15 Bankruptcy Filing. I doubt you could get that difference without years of intentional lying by the CFO to shareholders to cover up the reality that Sears should have filed for Bankruptcy years before it did. As well; the Operating Losses presented to the Bankruptcy court showing monthly operating losses between Oct 15 and today under $125 million fail to explain a deficit gap that has grown from $4.4 Billion in Oct/2018 to over $7.2 billion today! (And that is ignoring line items I labelled as a GARGANTUAN FUBAR).

It is hard for me to believe there could be a FUBAR of this magnitude because not only is this drawn up by a highly priced CFO; it is double checked; triple checked.. and quintuple checked by lawyers charging thousands of dollars per hour!

Mostly BK related. About 200M