|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||0.2710 - 0.2895|
|52 Week Range||0.1200 - 2.7700|
|Beta (3Y Monthly)||3.64|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 7, 2019 - Aug 9, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||2.00|
Sears and Kmart are closing 26 stores in October as their parent company, Transform Co., says it faces challenges "returning stores to sustainable levels of productivity." Yahoo Finance's Akiko Fujita, Jared Blikre, Ines Ferre and Dan Howley discuss.
Transform Holdco, the company formed in January to buy the remaining assets of bankrupt Sears Holdings Corp., said it will begin ‘liquidation sales’ this week in 26 stores that will close in late October.
Transform Holdco, which was created in January to purchase the remaining Sears Holdings Corp. assets in order to continue as a going concern, has announced an additional 26 Sears and Kmart store closures. "After careful review of where we are today, we believe the right course for the company is to accelerate the expansion of our smaller store formats which includes opening additional Home & Life stores and adding several hundred Sears Hometown stores after the Sears Hometown and Outlet transaction closes," the statement said. The Sears Hometown bid was made in April. Liquidation sales at the 26 closing stores will begin on August 15. Sears Holdings stock has sunk 85.5% over the past year while the S&P 500 index is up 3% for the period.
(Bloomberg) -- J.C. Penney Co. creditors are pushing for discussions on a possible debt swap that would give the company’s new managers more time to turn the struggling retailer around.Some of the department-store chain’s bondholders are seeking to rework a portion of its $4 billion of debt well ahead of their maturities in an effort to avoid the last-minute brinkmanship that contributed to the bankruptcies of Toys “R” Us Inc., Sears Holdings Corp. and Barneys New York Inc., according to people with knowledge of the matter.A possible deal could include swapping second-lien notes into higher-priority debt, giving creditors additional collateral, or compensating investors with higher coupon securities in exchange for extending maturities, said the people, who asked not to be identified discussing private negotiations. The fact that a handful of the J.C. Penney’s creditors are believed to also be sellers of near-term derivatives that protect against default is seen as a key driver in the push for formal talks, which haven’t started yet.The cost to protect against a J.C. Penney default for six months dropped in afternoon trading Wednesday after reaching a record high. The contracts fell as much as 2 percentage points to 15.7 percentage points upfront in intraday trading, CMA prices show.The retailer has been working with restructuring advisers from law firm Kirkland & Ellis and investment bank Lazard to explore opportunities to improve its balance sheet ahead of key maturity dates, the people said. A group of first-lien creditors is working with White & Case, while second-lien creditors are being advised by Stroock & Stroock & Lavan, the people said.J.C. Penney, Lazard, White & Case and Stroock & Stroock & Lavan declined to comment, while Kirkland & Ellis didn’t return requests seeking comment. J.C. Penney is scheduled to report second-quarter earnings on Aug. 15, which likely limits its ability to engage in formal discussions at present.Investors holding J.C. Penney’s secured debt believe the Plano, Texas-based company has more room to maneuver than Sears, Toys “R” Us and Barneys did because it has $1.75 billion of liquidity available, and no meaningful bond and term-loan maturities until 2023, the people said. The retailer has enough cash on hand to pay its upcoming debt obligations, they said.The company also doesn’t face the same potential pressure from vendors that chains such as Toys “R” Us did given it has a significantly broader vendor base, one of the people said.The 117-year-old department-store chain is under pressure to show that it can execute a turnaround under Chief Executive Officer Jill Soltau and avoid the same fate as many of it retail peers. Soltau was brought on in October to kick-start sales and improve margins, yet the company’s share price has tumbled and bonds have slid to depressed levels as investors remain dubious.Hedge funds have been betting that J.C. Penney may default on its debt within the next year, sending the cost of protection in the CDS market soaring. It costs nearly $1.7 million to protect $10 million of debt against default for six months, roughly double what it did a month ago.(Updates credit default swap pricing in fourth and final paragraphs.)To contact the reporters on this story: Allison McNeely in New York at email@example.com;Katherine Doherty in New York at firstname.lastname@example.org;Claire Boston in New York at email@example.comTo contact the editors responsible for this story: Rick Green at firstname.lastname@example.org, Boris KorbyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Most of the damage from Sears and Kmart store closures is already baked into Seritage's results -- and the retail REIT has lots of new tenants set to begin paying rent over the next year or two.
Say the world 'architect,' and images immediately come to mind of grand homes or buildings, artistic designs and blueprints. But what an architect actually does, and how much one makes, varies widely.
Shares of Levi Strauss & Co. (NYSE: LEVI ) sold off following its July 9 second-quarter report, and CEO Charles Bergh defended the results and made his pitch for the business on CNBC's "Mad Money" ...
(Bloomberg) -- Workers who retired after years of folding shirts and selling refrigerators for Sears Holdings Corp. banded together earlier this year to complain when the retailer’s bankrupt shell terminated their life insurance plan.Those benefits were potentially worth thousands of dollars to heirs of the former employees. Now the Sears estate has responded with a proposal that would pay them about $135 each.It’s another blow to workers who’ve seen livelihoods disappear as the department store chain, once the biggest in the U.S., slid toward bankruptcy. Sears filed for court protection last year and sold its stores and most of its assets to a unit of Eddie Lampert’s ESL Investments Inc. in January. The deal left behind the Sears estate, which is responsible for settling old debts, including the life insurance plan.The retiree plan provided policies to about 29,000 former workers with death benefits between $5,000 and $14,500, according to a new court filing that lays out the estate’s proposal. A smaller group of a dozen retired senior executives had policies with death benefits between about $356,000 and $2.7 million.Limited FundsThe proposal to modify the plan would terminate the plan and award eligible Sears retirees an unsecured claim of $5,000. But given the estate’s limited resources, holders of unsecured claims will receive estimated payouts of 2.3% to 2.7%, according to the filing -- or about $115 to $135.“The new plan is totally unacceptable to the retirees,” said Ronald Olbrysh, chairman of the National Association of Retired Sears Employees. He added that many Sears retirees aren’t able to obtain new life insurance policies now because they’re too old. “It’s totally unfair, what Sears is attempting to do,” he said.Retirees who died after the plan was terminated but before the proposal is approved would receive an administrative claim of $5,000. That type of claim gets greater priority for payment, which means their heirs would likely receive the full amount.The estate terminated the retiree plan in March, though participants had the opportunity to convert the coverage to individual life insurance policies at their own cost.Lawyers for the retirees objected to the termination and in June the federal judge overseeing the bankruptcy approved the formation of a committee to represent the interests of retired workers.Failure to terminate the retiree plan would make it more difficult for the estate to confirm its bankruptcy plan, which could lead to liquidation of the estate and much lower recoveries for all creditors including the retirees, according to the filing. Sears estate lawyer Ray Schrock said in a court hearing last month that they tried to make ESL assume the retiree benefits, but were unsuccessful.A hearing on the proposed order is slated for Aug. 12.The case is Sears Holdings Corp., 18-23538, U.S. Bankruptcy Court, Southern District of New York (White Plains).To contact the reporter on this story: Josh Saul in New York at email@example.comTo contact the editors responsible for this story: Rick Green at firstname.lastname@example.org, Nicole BullockFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- One reason the U.S. government is investigating Amazon.com Inc. for antitrust violations is concern that the company is undermining the retail industry. Treasury Secretary Steven Mnuchin says flatly that Amazon “has destroyed the retail industry across the United States.” The number of retail jobs has indeed fallen over the past few years — if so far only slightly. Going forward, the jobs that remain will also shift focus: Retail workers will increasingly cater to wealthier, rather than middle-class, consumers.The trend is already visible in struggling malls and big box stores. The Toys “R” Us bankruptcy single-handedly did away with tens of thousands of jobs. Gymboree, Charlotte Russe and Payless lead the list of other middle-class retailers that have gone bankrupt in recent months. Consumers turning to Amazon and other online sellers for toys, clothing, home furnishings and other goods is only part of the reason physical retailers are struggling. Private equity firms contribute to the problem by buying retail companies and then saddling them with debt, making it impossible for the firms to invest in their own businesses. This can lead to a death spiral: Stores grow older and lose relevance to consumers, leading private equity owners to cut costs, lay off workers and ultimately close stores. Sears Holdings Corp. has been the epitome of this trend.The rising cost of retail labor adds to the pressure. For more than a year now, the increase in average hourly earnings for retail workers has exceeded 4% on an annual basis — due to a combination of a tight labor market, increases in the minimum wage in states such as California, and high-profile efforts by large employers to raise starting wages. With Whole Foods (owned by Amazon) setting its starting wage at $15, Target aiming for the same level by 2020, and Walmart presumably close behind, smaller and less profitable retailers can’t keep up.Research on higher minimum wages in the restaurant industry has found that they tend to drive out restaurants with comparatively low customer reviews. In retail — a competitive, low-margin industry — the least efficient companies and those with the lowest profit margins have the hardest time raising prices enough to keep wages competitive.As retail employment thus hollows out, only some stores will be able to maintain a labor-intensive model: the big chains that still have plenty of foot traffic and revenue, and stores that cater to wealthy customers.For the rest, expect to see what I observed at a Target store last weekend. A “now hiring” sign on the door advertised the new $13-an-hour starting wage. But only one employee manned the checkout area, and that person was mainly ushering customers to the self-checkout registers. Amazon’s attempt to build convenience stores without cashiers, and the trend among restaurants to replace wait staff with ordering tablets points to a future in which middle-class consumers still shop in stores and eat in restaurants, but interact with fewer humans while they’re there.The retail workers who remain stand to make more money than they once did. But those people who still bag your groceries or ask if you want fries with that will become, like the milk-delivery men before them, a nostalgic memory. To contact the author of this story: Conor Sen at email@example.comTo contact the editor responsible for this story: Mary Duenwald at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Conor Sen is a Bloomberg Opinion columnist. He is a portfolio manager for New River Investments in Atlanta and has been a contributor to the Atlantic and Business Insider.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Walmart (NYSE:WMT) stock continues to surge higher. Amid massive e-commerce growth and improving same-store sales, both the WMT stock price and its valuations continue to climb. As a result, the Walmart stock price now hovers above $113 per share, less than 2% lower than its all-time high.Source: Shutterstock However, overall growth remains meager, and the big-box retailer continues to struggle in its ventures outside of North America. As a result, its earnings multiple has moved far ahead of company and industry averages. The high valuation and modest income growth indicate investors should begin considering alternatives to Walmart stock. WMT Stock Surged on E-commerce, Business ImprovementsWalmart has not changed as much as management would like you to think. Many will take issue with that statement, mainly because of its relatively new e-commerce segment. Admittedly, this omnichannel segment renewed investor interest in WMT stock. As a result, shares now trade at a forward price-to-earnings (P/E) ratio of 22.5.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTo be sure, traders had become overly pessimistic about the Walmart stock price in the middle of this decade. At the time, an attitude that Amazon (NASDAQ:AMZN) would "take over retail" gripped Wall Street. Investors treated WMT stock as if it were the next Sears Holdings (OTCMKTS:SHLDQ) or JCPenney (NYSE:JCP). * 10 Stocks to Buy From This Superstar Fund Walmart, as well as peers such as Target (NYSE:TGT) and Costco (NASDAQ:COST), responded with an omnichannel strategy. As a result, valuations and sentiments have moved to the other extreme.In fairness, same-store sales also saw improvements during this time. Moreover, the current CEO has shown more interest in addressing worker complaints than his predecessors. It may not bring comfort to customers that one of the gripes involved "hygiene," but management has begun to respond to these issues. Many of Walmart's Core Problems RemainNonetheless, challenges remain. As our own James Brumley mentioned, e-commerce losses now surpass $1 billion per year, despite e-commerce sales growing by 37% during the last quarter. Mr. Brumley argued that overall profits more than compensate for this loss. He also believes that investors should give Walmart stock the kind of latitude to succeed once granted to Amazon.However, e-commerce only made up 1.4% of sales, and overall growth remains modest. Revenue only grew by 1% in the previous quarter. Furthermore, over the past five years, profits increased by an average of 0.29% per year. Analysts believe they will now grow by 3.69% per year over the next five years. An improvement, yes, but does that truly justify 22.5-times forward earnings?Moreover, Walmart still suffers from saturation at home and an inability to gain traction abroad. Many remember high-profile failures in places such as Germany and Brazil. Its modest store count more than 20 years after it became one of the first retailers to enter China also does not inspire confidence. Much of the international focus has switched to Flipkart, its e-commerce company in India. However, our own Vince Martin thinks Flipkart caused the aforementioned $1 billion-plus e-commerce losses. TGT Stock Offers Higher Growth at a Lower CostAdditionally, investors can choose more reasonably-priced alternatives, one of which is archrival Target. TGT stock trades at a much lower 13.8-times forward earnings. Also, its dividend yield of 3% comes in well ahead of Walmart's return of under 1.9%.Further, despite not having a presence outside of the U.S., Wall Street predicts average annual growth of 8.35% per year over the next five years. This comes in at more than double Walmart's expected increases in earnings.Both Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) have found growth avenues despite negligible store growth. Perhaps Walmart can do the same. However, until it can either grow internationally or at home, I see little reason to buy Walmart stock right now. Final Thoughts on Walmart StockGiven high valuations and low growth, paying 22.5 times earnings for Walmart stock makes little sense. Walmart has excited Wall Street with omnichannel retailing. It has also found a way to increase same-store sales, and the company has made more of an effort to improve its image.Nonetheless, growth remains meager. And it faces ongoing struggles with saturation at home and an inability to connect with consumers outside of North America. Not to mention, investors can buy a lower-cost, faster-growing retail business in Target.Until Walmart can lower its valuation or increase its overall revenue growth, investors should stay away from WMT stock.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy From This Superstar Fund * 7 Stocks to Buy This Summer Earnings Season * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Improvements Do Not Justify the Higher Multiple in Walmart Stock appeared first on InvestorPlace.
Chicago-based cannabis company Cresco Labs Inc (OTC: CRLBF ) is making changes to its top management team with the appointment of Mo Dastagir as its new Chief Information Officer. Dastagir will replace ...
The Sears spinoff is making progress on some of its larger-scale redevelopment opportunities, which take longer to pull off but have greater upside.
As a mega-merger is announced, one of the last things investors pry open are the pension and retirement obligations. Defined benefit pension plans are by and large a thing of the past, and for good reason. Eddie Lampert finally moved blame to the pension plan for his struggles at Sears as his company teetered on the brink of collapse.