Sears closing 235 stores

Discussion in 'The Bar' started by Ben Dover, Dec 6, 2014.

  1. Ben Dover

    Ben Dover Well-Known Member

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    What a shame. I used to work in one of their warehouses in the late 90's. They actually paid their employees pretty well. Merging with Kmart was the dumbest thing they could have possibly done, especially when Kmart was in bankruptcy protection at the time.


    Sears (SHLD) shares fell Thursday, after the struggling department store announced an adjusted net loss of $296 million—in line with the updated guidance it gave in November.

    The retailer also said it's accelerating the number of stores it plans to close this year, boosting its list from the 130 underperforming stores it announced in its second-quarter earnings release, to a total of 235 stores.

    Analysts called the move a step in the right direction for the company, which has been tapping into its real estate in creative ways to compensate for downward-spiraling sales. Still, they said the haircut won't be enough on its own to turn the tide at Sears, adding that it needs to close even more stores—and figure out how to become profitable.

    "This is the primary problem remaining at Sears, as management needs to find a way to stop the over $1 billion of negative cash flow that is undermining the positive repositioning moves," Credit Suisse analyst Gary Balter said.

    Although the store closings will no doubt help Sears trim its losses—CEO Eddie Lampert said they produced a loss of about $50 million in 2013—Moody's analyst Scott Tuhy said those savings will only go so far for a company that's posting an adjusted loss closer to $300 million. Its net loss was substantially greater for the third quarter, at $548 million.

    Belus Capital Advisors analyst Brian Sozzi said the retailer likely needs to close another 200-plus locations in 2015. As of Nov. 1, Sears had 1,050 Kmart locations in the U.S., and 781 domestic Sears stores. In its conference call, the retailer said that it owns about 700 of these locations.



    As a kid, I used to thumb through those Wish Books for hours

    [​IMG]
     
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  2. zhukov

    zhukov Time Traveler VIP

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    They were toast after buying K-Mart. What a stupendously stupid move.

    edit: other way around but kept sears name.

    stupidity level remains unchanged.
     
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  3. P-B

    P-B Honourary Canuck Gold

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    No. Kmart bought Sears after they emerged from bankruptcy, then assumed the name "Sears Holdings" for the new corporation.
     
  4. yosemite sam

    yosemite sam Camel Jockey

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    I used to jack it to the sears catalog like a mental patient.
     
  5. freds

    freds . VIP

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  6. Ben Dover

    Ben Dover Well-Known Member

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    You are correct. I should have remembered that, but that happened right around the time I left. Still a really stupid move, though.
     
  7. LonghornJ

    LonghornJ VIP Extreme Gold

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    I was really hoping the Kardashian clothing line would save them :oops:
     
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  8. ZosoHitler

    ZosoHitler VIP Extreme Gold

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    It's because of goddamn Amazon. Nobody goes out to shop anymore.
     
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  9. P-B

    P-B Honourary Canuck Gold

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    Adam Levine's and Nicki Minaj's clothes are Kmart's last, best hope.
     
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  10. Neesie

    Neesie Princess Parliaments VIP

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    What's dumb is when people think keeping companies that lose money afloat for nostalgia's sake is a good idea.
     
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  11. LonghornJ

    LonghornJ VIP Extreme Gold

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    Skinny jeans and sweatpants?
     
  12. Neesie

    Neesie Princess Parliaments VIP

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    I fucking LOVE Amazon!!!! :yes:
     
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  13. jonpow

    jonpow Tennessee Jed VIP

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  14. Gomez

    Gomez Well-Known Member

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    step up their internet game :dontknow:
     
  15. zhukov

    zhukov Time Traveler VIP

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    don't forget Jaclyn Smith

    [​IMG]
     
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  16. P-B

    P-B Honourary Canuck Gold

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    [​IMG]
    [​IMG]
     
  17. DarkFriday

    DarkFriday Fired as a MOD...Twice. Gold

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    [​IMG]
     
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  18. zhukov

    zhukov Time Traveler VIP

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    u jackin tonight? :ucoffee:
     
  19. P-B

    P-B Honourary Canuck Gold

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    What they really need to do is clean the fucking stores.
     
  20. ZosoHitler

    ZosoHitler VIP Extreme Gold

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    And a few years ago they hired a guy who was a whiz kid executive at Apple to come in and rescue the company and he ended up driving them even further into debt then promptly cashed out and fled back to Silicon Valley aboard his diamond encrusted jet.
     
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