News Sears And Kmart On Death Watch...

Discussion in 'The Howard Stern Show' started by HS Cult Leader, Sep 15, 2016.

  1. HS Cult Leader

    HS Cult Leader Elite Member Gold

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    Moody's: Sears' and Kmart's shutdown is imminent


    Hayley Peterson
    Sep 14th 2016 11:02AM

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    Moody's analysts say Sears and Kmart don't have enough money — or access to money — to stay in business.

    In a note published Wednesday, the analysts downgraded Sears' liquidity rating, saying the company is bleeding cash and will have to continue to rely on outside funding or the sale of assets, such as real estate, to sustain operations.

    "We recognize the risks associated with relying on these sources and continued shareholder support to finance its negative operating cash flow which is estimated by Moody's to be approximately $1.5 billion this year," the analysts wrote.

    Kmart in particular is at risk of shutting down, according to Moody's.

    "The ratings... reflect our view on the uncertainty of the viability of the Kmart franchise in particular given its meaningful market share erosion," the analysts wrote.

    Sears said in August that its cash and equivalents have fallen to $276 million from $1.8 billion one year ago.


    As a result, the retailer was forced to accept $300 million in financing from Sears CEO Eddie Lampert's hedge fund, ESL Investments, in the most recent quarter.

    The company is losing cash as sales plunge at its namesake and Kmart stores.

    Net sales fell 8.8% to $5.7 billion in the second quarter. Same-store sales plunged 7% at Sears stores and dropped 3.3% at Kmart stores.

    Sales have been falling for years.

    Sears' sales dropped from $41 billion in 2000 to $15 billion in 2015.

    Kmart, which merged with Sears in 2005, has seen its sales plunge from $37 billion to $10 billion in the same period.

    Moody's analysts noted that Sears has a sizable asset base, but "its debts are significant with approximately $3.5 billion of funded debt as well as an unfunded pension and post-retirement obligation of $2.1 billion."

    The company's minimum pension contributions are an immediate threat to its cash flow. In 2016 and 2017, minimum pension contributions total approximately $596 million, analysts said.

    http://www.aol.com/article/finance/...imminent/21472016/?ncid=txtlnkusaolp00000058&
     
  2. larryluncg

    larryluncg Empty VIP Gold

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    Another victim of wal mart
     
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  3. DiamondGoddess

    DiamondGoddess Born Ready for My Close-Up! Gold

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    I was in a Sears in a prosperous tech area last Summer.

    People were in there buying stuff.

    They own their real estate, so I think they'll be fine.

    Plus, they will order stuff online for you in-store and have it sent to you, so they are trying to compete in the e-commerce space, too.
     
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  4. HS Cult Leader

    HS Cult Leader Elite Member Gold

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    That and the rising power of Amazon, even Walmart needs to watch out.
     
  5. Gomez

    Gomez Well-Known Member

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    This is sad. I love me some Sears. :tears2:
    I buy all my tools and house shit there.
     
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  6. HS Cult Leader

    HS Cult Leader Elite Member Gold

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    I went to the Montclair Plaza Sears, near where I grew up, twice this summer when I was there vacationing. You could never find parking there years ago, now both times the lot was all but empty along with the store. Inside the store it was just sad, and even worse, most of the Craftsman tools I was looking at were made in China. No more Made In USA!


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  7. DiamondGoddess

    DiamondGoddess Born Ready for My Close-Up! Gold

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    Yeah, it is sad!!!

    (I still think the ones in places where people have more money will survive a while longer. I saw lines at checkstands when I was in there, and I bought a pair of walking shoes.)
     
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  8. Lance Murdock

    Lance Murdock Well-Known Member

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    It's very odd. Same thing by me, the sears and kmarts do pretty well. I'm in NY; especially the Sears.
     
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  9. Apple the cat

    Apple the cat Moral conscience of the Shed

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    So true- one of the best things about Sears was the quality of made in USA Craftsman tools. Now, as was said, they're made in China, and if you return even a made in USA tool, they give you a hassle over it. If I wanted cheap Chinese junk tools, I'd buy them at Harbor Freight- half the price, and hand tools are guaranteed forever there too!
     
  10. Samurai

    Samurai Well-Known Member VIP

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    I was in a Sears Outlet a few weeks back.

    Dirty floor, disorganized merchandise, half the ceiling lights were burned out and one that functioned was buzzing very loudly.

    KMart is a couple decades late in being able to differentiate themselves in a significantly positive way from WalMart. Their store brand items are, at best, only equal to WalMart. WalMart also has a vastly superior logistics and distribution system -- meaning KMart can't effectively undercut them on prices.
     
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  11. Phil A Sheo

    Phil A Sheo Well-Known Member

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    Wonder if the Parts Direct part of Sears will be around...where else will I get parts for my tractor & landscaping tools?!?
     
  12. Dorb

    Dorb Lovable Old Pig VIP Gold

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    Who wants to go out shopping and deal with traffic, crowds, and lines.
    When you can get it delivered right to your door in 2 days.
     
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  13. HS Cult Leader

    HS Cult Leader Elite Member Gold

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    There was a time that the catalog was one of the most important book in an Americans house:


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  14. oldpaddy

    oldpaddy Well-Known Member

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    You can smell death when you walk into a Kmart, and to a lesser extent sears. Best buy reeks of death too.
     
  15. oldpaddy

    oldpaddy Well-Known Member

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    That catalog was fucking awesome!
     
  16. ClintDagger

    ClintDagger World's #2 Ranked Poster - Exec VP Larry, Inc VIP

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    I had to go to sears just the other day, first time I'd been in one in easily a decade. It looked like what I'd expect a department store to look like at the outset of a zombie apocalypse. Empty parking lot, empty shelves, dirty floors, flickering lights. I can't believe they are still around.
     
  17. HS Cult Leader

    HS Cult Leader Elite Member Gold

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  18. Dorb

    Dorb Lovable Old Pig VIP Gold

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    Sears christmass catalogue in the 50's.
    I would go right to the toy section and look at the cap guns.
     
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  19. DiamondGoddess

    DiamondGoddess Born Ready for My Close-Up! Gold

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    There is also a Walmart somewhat near the Sears, and they are flooded with techies everytime I'm in there.

    #LocationLocationLocation

    :c
     
  20. Hamster

    Hamster Well-Known Member

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    The work that went into those catalogs - my God - and all before electronic typography.

    In high school we worked on a TRS-80 and sent our copy to a type house with a Compugraphic 9600. Macs came out when I was in college. First job used Pagemaker, then Quark.