Montgomery Wards the bankruptcy filing was a bit of a shocker. If I recall they cited the deteriorating sales at their stores especially in electronics where the competition just pounded them. Interestingly prior to that there had been a lot of talk about MW doing an IPO!!
Sears & K-Mart are getting pounded on all fronts. Does anyone recall what Ray Kroc said about when he encountered a competitor who was drowning?
KCD and 125 stores are the "collateral " for Sears-Re (as in reassurance ) everybody and their brother gets a piece of Sears-Re , when the securities in the Re can't meet the liabilities , then the liabilities get the collateral ..........Read the Sears Reassurance , then read the loans, bonds, plus liabilities mentioned in the Re ...
while it is written in a circle, all circles start were they end
they don't own any real estate in Malls , the own the ghetto ...name the location with term of lease ......moat leases are NOT long term ...a few are !!!.....page 3 of 10-K tells you about some leases
Tell me something I don't know They own 45% of their stores, and a lot of long term leases are 80% same as own. Because the real estate leased locations are also very valuable
wow...... and this is still $24.00 ?
A clearance sale is coming for sure... way before X-mas.......... because by then...... who knows if Sears will still be around............ I think it will......but who am I to predict the future.......??
How many properties are locked up in KCD?
Not that I care as we've known for a long time that Eddie had no plan for "holdings" to be viable in the shell he left as the public entity
page 14 and 15 shows the locations as well as 728 owned , in that 728 owned , that is mostly owned ghetto's , NOT land under them ,some stand a lone stores , own the land No malls
they own 200 acres at home office ,
page 3 gives some info also (275 LE stores with in a store ) ...each one of those they close , they eat LE relocation cost , per spin off agreement
there were a lot of closings announced prior to the 10-k filing that have closed after
subtract 275 stores LE is in , subtract 125 stores in Sears-reassurance , subtract 25 stores meathead is getting
when you have a lease that is not costing you diddly , not spending in the store , hired all part time minimum wager employees , no benefits and still can't make a profit ?????
they need to file Bankruptcy
I withdrew my post. The source was the Pittsburgh Post-Gazette, but I could find nothing corroborating the number owned outright vx the number leased. Their store count, 2377, would be in line with the 2477 in the 2/14 press release by SHLD less subsequent closings. The closings were a KMart in Rochester, PA and a sear in the Centennial Mall ll.
It was in the Pittsburgh Post-Gazette as a trailer to an article announcing the closing of a KMart in Rochester, PA and a Sears in Centennial Mall ll in Pittsburgh. The store count would seem to be accurate given the 2/14 store count of 2477 and the subsequent closures.
There was an article yesterday that stated SHLD had 2300 locations (prox) of which 1308 were Sears, 300 of which were owned and the balance leased. KMart had 1000 locations and the number owned was not defined. I will make a leap of faith that the KMarts are owned.
I will go back and see if I can locate that article but with the way things disappear from the net ....?
why $400 million? they will pay back 80% and default , Eddie will get 25 stores for $80 million
you don't think this will drag out with extensions , maybe increase the loan with more stores
you don't pay your pay day loan, you lose your collateral , all of it !!!
that is $3.2 million a piece for the best
Sears does not have that much left that is high value , their biggest asset is home office , they own that land
95% of Sears they only own the ghetto
most Kmarts are not in a desirable area
I am not an attorney either but I had to develop a decent amount of expertise in Bankruptcy law and the UCC. ESL and its various and sundry stepchildren have either been used extensively or were set up for sole purpose of financing the SHLD operation. A stronger case for piercing could be made by the investors in the Hedge Funds who stand to take a bath, but the shareholders in SHLD can make a case that these operations were set up to effectively transfer assets, without due consideration, from SHLD to ESL and its affiliates. The case against Fairholme is tenuous at best but lawyers like deep pockets.
They don't own all of their stores dude. Most are on long term leases (10+ years) and ground leases (50+ years). Most of the real estate they hold title to has debt on it.
The truth is I hope you've just had a concussion if that valuation is your normal skill set.
Sentiment: Strong Sell
Definitely the first 2. JCP is definitely on its way out, but it will be a slow, painful death like it was for SHLD and RSH.
BBY should be ok, because the still have positive earnings and decent net tangible assets. They are also choosing not to renew leases as the roll at non-performing sales, reducing the square footage for new locations, and relying more on their online stuff. Basically, they're doing what SHLD should have done before it gets bad. I still won't buy their stock though.