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FarCenter

(19,429 posts)
Sun Dec 4, 2016, 10:33 AM Dec 2016

Sears is on the brink of catastrophe as store closures loom and top execs flee the company

Things aren't looking good for Sears.

The company is shutting down dozens of Kmart stores this month and two of its highest-ranking executives left this week in the midst of the key holiday shopping season.

This comes following speculation among Sears and Kmart employees, suppliers, and several banks that the retailer will soon go bankrupt — something Sears has repeatedly dismissed.

Jeff Balagna, formerly Sears' executive vice president, left the company Wednesday, "in order to focus on his other business interests and pursue other career opportunities," Sears said in an SEC filing dated November 23.

Balagna did not respond to a request for comment. Sears declined to comment beyond what was stated in the filing.

Sears President and Chief Member Officer Joelle Maher also left the company this week, Sears confirmed to Business Insider. The company declined to give a reason for her departure.

The timing of the departures — so close to Sears' upcoming third-quarter earnings report and in the middle of the holiday season — is "highly unusual," according to Mark Cohen, director of retail studies at Columbia Business School and the former CEO of Sears Canada.

http://www.businessinsider.com/sears-problems-loom-large-2016-12

49 replies = new reply since forum marked as read
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Sears is on the brink of catastrophe as store closures loom and top execs flee the company (Original Post) FarCenter Dec 2016 OP
Sad. DemocratSinceBirth Dec 2016 #1
I guess I won't be buying that kenmore dishwasher, then. Squinch Dec 2016 #2
Buy a BOSCH instead CountAllVotes Dec 2016 #11
OK, now that you mention it... Squinch Dec 2016 #13
Haven't noticed any odors nor problems with drainage CountAllVotes Dec 2016 #15
You've convinced me. It's going to be the thing under the tree this Christmas! Squinch Dec 2016 #17
That old woman convinced me CountAllVotes Dec 2016 #25
Kenmore will live on philosslayer Dec 2016 #18
Kenmore and Craftsman I imagine Yo_Mama_Been_Loggin Dec 2016 #40
Sears Puts Kenmore, Craftsman Up for Grabs Aug 25, 2016 Omaha Steve Dec 2016 #47
Kenmores are made by other companies for Sears csziggy Dec 2016 #44
Most of the Kenmore appliances are rebranded Whirlpool. NutmegYankee Dec 2016 #31
I noticed that. I bought a Whirlpool fridge 15 years ago and my sister bought a Kenmore. Squinch Dec 2016 #48
Sears was once "America's Store" madaboutharry Dec 2016 #3
My mom worked for Sears for 30 years Ghost of Tom Joad Dec 2016 #33
OMG! The Christmas Catalog! I lived in that thing. Squinch Dec 2016 #49
Eddie Lampert is a right-wing idiot. dawg Dec 2016 #4
Is he getting richer while everything around him goes down in flames? Iggo Dec 2016 #9
I doubt it. He's probably losing his ass on this. dawg Dec 2016 #10
We have been reading about the demise of Sears and K-mart for years now. femmocrat Dec 2016 #5
They kind of knelled in different ares. dixiegrrrrl Dec 2016 #34
I haven't been in a Sears for ten years or more. lpbk2713 Dec 2016 #6
I fear for the future of 'Discover Card' NRQ891 Dec 2016 #7
Why doesn't Trump save it? DemocratSinceBirth Dec 2016 #8
Will Comrade Casino & Republican Crony Capitalists step in with massive Corporate Welfare? Achilleaze Dec 2016 #12
There's a difference between moving jobs and going under. hughee99 Dec 2016 #20
OK. But there's no difference between Crony Capitalists & Republicans Achilleaze Dec 2016 #22
Good riddance to Sears Uben Dec 2016 #14
I noticed JCPenney started selling appliances because they know Sears is going under kimbutgar Dec 2016 #16
It's not manufacturing so hard to say about Sears. Some Sears stuff is American made and heartland lunasun Dec 2016 #21
They should have been what Amazon is today with the history of catalog shopping the company has lunasun Dec 2016 #19
Yes. They gave up the catalog marybourg Dec 2016 #27
This message was self-deleted by its author Duckhunter935 Dec 2016 #30
They should go back to their roots and offer kit-based tiny houses. Barack_America Dec 2016 #23
My water heater is from sears Travis_0004 Dec 2016 #24
Penney's is now selling appliances wishstar Dec 2016 #26
Penney's sold appliances years ago Freddie Dec 2016 #41
Eddie Lampert applied Ayn Rand's business principles and ruined SEARS. blm Dec 2016 #28
Ayn Rand: How is this still a thing? Initech Dec 2016 #35
This message was self-deleted by its author Duckhunter935 Dec 2016 #29
Watch for liquidation sales! Freddie Dec 2016 #42
This message was self-deleted by its author Duckhunter935 Dec 2016 #43
During going out of business sale at the local KMart csziggy Dec 2016 #46
Trump to the rescue??? Vinca Dec 2016 #32
Can't blame Mexico for this one. baldguy Dec 2016 #36
Naw, they'll blame Obama. JHB Dec 2016 #39
How much did the executives loot and pillage from Sears? Initech Dec 2016 #37
In the case of Sears, the pillager is Eddie Lampert, hedge fund operator FarCenter Dec 2016 #45
A pity MFM008 Dec 2016 #38

CountAllVotes

(20,854 posts)
11. Buy a BOSCH instead
Sun Dec 4, 2016, 11:12 AM
Dec 2016

That is what I did. Excellent dishwasher that I bought 10 years ago and works perfectly! As for Kenmore products, this is sad indeed.

Sears did it to themselves IMO. The dishwasher might be $500.00 but you need another $200.00 for a warranty and another $25.00 to have an old dishwasher removed, another $50.00 for extra parts needed to install it and alas, sales tax on top of it. That $500 dishwasher just cost you abt. $800.00 there ...

Most places will do all of the above free of charge (sales tax is inevitable) but, you don't tend to get nickel and dimed to death!


Squinch

(50,774 posts)
13. OK, now that you mention it...
Sun Dec 4, 2016, 11:17 AM
Dec 2016

Bosch is my other choice, but I have read a lot of reviews that say that it doesn't drain correctly and has a smell. Have you experienced this?

I as really surprised to find that after the ConEd rebate and a coupon, it's as cheap as the other brands.

CountAllVotes

(20,854 posts)
15. Haven't noticed any odors nor problems with drainage
Sun Dec 4, 2016, 11:48 AM
Dec 2016

It was installed when I had my kitchen remodeled.

I would never try doing it myself. You really do need the skills of a professional.

That said, very satisfied with it and the reason I bought it is because an 80-year old woman I know said, "Yeah! I finally got a dishwasher that actually gets my dishes CLEAN and it is handsome too!". It is handsome I'd say. I got one in the color black btw. all the way IMO.



CountAllVotes

(20,854 posts)
25. That old woman convinced me
Sun Dec 4, 2016, 02:36 PM
Dec 2016

Seems she's had several dishwashers in her day and none of them really did the job to her satisfaction. I know little about new anything so I went with her advice. No regrets after 10 years! I must admit however that I do not use it a whole lot, just when I have a big load of stuff! Great for sanitizing, that is for certain!

I think you'll be happy with it!



Omaha Steve

(99,071 posts)
47. Sears Puts Kenmore, Craftsman Up for Grabs Aug 25, 2016
Sun Dec 4, 2016, 07:28 PM
Dec 2016

http://www.foxbusiness.com/markets/2016/08/25/sears-puts-kenmore-craftsman-up-for-grabs.html

Matthew Rocco Published August 25, 2016 Retail FOXBusiness

Sears Holdings (SHLD), which booked another loss in the second quarter, has received interest from a variety of companies eyeing the floundering retailer’s familiar appliance, tool and auto brands.

The Illinois-based company has grappled with challenges at Sears and Kmart, two chains that struggling to turn things around in a tough environment for retailers. Target (TGT), Kohl’s (KSS) and others have recently reported weaker sales as shoppers spend more online. Sears is facing some broader issues. The company has posted red ink for the last six fiscal years, and 78 additional Sears and Kmart stores will be closed by the end of the summer.

In May, Sears announced plans to seek out buyers or partners for its Kenmore, Craftsman and DieHard brands, hoping to unlock the value of three brands that are well-known in their respective categories. The company provided an update on Thursday, saying it continues to explore strategic alternatives for the brands—housed under a division known as KCD—and Sears Home Services. Sears is considering “potential partnerships or other transactions that could expand distribution of our brands and service offerings to realize significant growth,” the company said in a statement.

So far, Sears has heard from domestic and international retailers, original equipment manufacturers, investors and other firms. Sears expects to continue its assessment over the next few months.

FULL story at link.

csziggy

(34,120 posts)
44. Kenmores are made by other companies for Sears
Sun Dec 4, 2016, 06:26 PM
Dec 2016

Some Kenmore appliancess are/used to be Frigidaire made. The Kenmore refrigerator/freezer set I have was also sold as a Frigidaire brand even though they were actually made by a Canadian corporation for both companies.

If you look there are lists on the internet that tell who made which Kenmore appliances over the years.

That said, when I went into Sears during their spring appliance sale to buy appliances for my new house in 2008 they were happy to sell me Frigidaire branded appliances (wall oven and dishwasher). They saved me a lot of money - the sale had everything 20% off, the two Frigidaire appliances I bought had an additional $500 rebate. Then I got a bid from a local appliance store with contractor prices for the same appliances - Sears matched the prices and gave me an additional 10% off - even the Frigidaire equivalent refrigerator/freezer set.

I paid less for those four appliances than I would have for just the refrigerator/freezer set!

There were no hard sell tactics and no effort to sell me extended warranties or installation. They also kept the appliances for almost six months at no extra charge until we were ready to put them into the new house.

Squinch

(50,774 posts)
48. I noticed that. I bought a Whirlpool fridge 15 years ago and my sister bought a Kenmore.
Sun Dec 4, 2016, 07:40 PM
Dec 2016

They are identical.

Mine broke - the door fell off on December 23 in a year that I was expecting 20 for Christmas dinner, which is already an acrobatic feat in my 8x10 kitchen, and we had to use duct tape and prop it up on phone books to get through the party...

...but I digress. Hers is still working, though.

madaboutharry

(40,152 posts)
3. Sears was once "America's Store"
Sun Dec 4, 2016, 10:56 AM
Dec 2016

Back in the 1960's my grandfather worked for Sears selling washers and dryers. He worked in the Sears store in Torrance, California. They lived in Manhatten Beach, so I'm sure it was the Torrance store. My mom said it was a beautiful store back then with the green script signage. My grandfather loved his job and thought that Sears was the greatest company to work for. He made a nice living and benefited from stock options that set my grandparents up with a nice savings. It was a different world. Sears screwed up badly in the 1980's with a lot of disastrous business decisions that it never recovered from.

It's really a shame.

Ghost of Tom Joad

(1,352 posts)
33. My mom worked for Sears for 30 years
Sun Dec 4, 2016, 03:05 PM
Dec 2016

she loved their profit sharing program and left before they discontinued that wonderful program. It did leave her with a wonderful retirement. She passed away several years ago and I'm glad that she's not here to see the demise of Sears. I have wonderful memories of Sears, the great candy department they had with nuts and popcorn. Also the wonderful Christmas catalog. Perhaps he who shall not be named can save the store and make Sears great again.

Squinch

(50,774 posts)
49. OMG! The Christmas Catalog! I lived in that thing.
Sun Dec 4, 2016, 07:44 PM
Dec 2016

I didn't really want a lot of toys, I just loved looking at pictures of so many in one place!

dawg

(10,610 posts)
4. Eddie Lampert is a right-wing idiot.
Sun Dec 4, 2016, 11:01 AM
Dec 2016

He has driven Sears into the ground with his idiocy. This guy's supposed to be a Wall Street genius? Forget it.

Iggo

(47,487 posts)
9. Is he getting richer while everything around him goes down in flames?
Sun Dec 4, 2016, 11:07 AM
Dec 2016

The he's a goddam Wall Street genius.

dawg

(10,610 posts)
10. I doubt it. He's probably losing his ass on this.
Sun Dec 4, 2016, 11:10 AM
Dec 2016

Lucky for him, he's independently wealthy apart from his interest in Sears Holdings.

dixiegrrrrl

(60,010 posts)
34. They kind of knelled in different ares.
Sun Dec 4, 2016, 03:06 PM
Dec 2016

About 3 years ago the manager of the Sears here in our small town quit his job and put his house up for sale ( 1/2 block from our house).
I had noticed that there was practically zero traffic into the store for some time.
Might be stores in larger populations were dying off more slowly.
I never understood why they bought K-Mart, cause K-Marts were crumbling everywhere I looked.

lpbk2713

(42,696 posts)
6. I haven't been in a Sears for ten years or more.
Sun Dec 4, 2016, 11:04 AM
Dec 2016



Probably because they are in the local mall and I'd rather stay away from that place.

NRQ891

(217 posts)
7. I fear for the future of 'Discover Card'
Sun Dec 4, 2016, 11:05 AM
Dec 2016

well, not really

I've never seen a company so frozen in 1974

this could be the death blow to malls - that still have a sears

Achilleaze

(15,543 posts)
12. Will Comrade Casino & Republican Crony Capitalists step in with massive Corporate Welfare?
Sun Dec 4, 2016, 11:13 AM
Dec 2016

It worked with Carrier (wink, wink). No doubt Republican-style Corporate Welfare will work with Sears (wink, wink).

Especially because once the Republicans kick all the Medicare, Medicaid, SSI, SDI and veteran's benefits under the bus, Republicans will have lots more taxpayer dollars to bequeath to their Corporate Buttkissers (R).

Uben

(7,719 posts)
14. Good riddance to Sears
Sun Dec 4, 2016, 11:46 AM
Dec 2016

I haven't shopped there in over 20 years and will never again. Their policies are what killed them, so the blame lies solely on the execs running the business. Cheated me out of $250. I called and cussed out the highest form of management I could get contact with. I'm hoping they go down in flames, but am sorry for the employees who need the job.

kimbutgar

(20,882 posts)
16. I noticed JCPenney started selling appliances because they know Sears is going under
Sun Dec 4, 2016, 12:41 PM
Dec 2016

My parents always brought their appliances at Sears and I used to but I brought my most recent refrigerator at Best Buy because I brought a crappy Kenmore one that lasted 8 years before the inside light burned up the inside of the refrigerator.

The crazy lambert used the company like an ATM. Just when chetolini gets in all these people will lose their jobs. I have a niece who lives in aarizona who is a right winger and is a manager at Sears. She will be out of work soon. Will her president Cheeto bribe Sears to stay in business?

lunasun

(21,646 posts)
21. It's not manufacturing so hard to say about Sears. Some Sears stuff is American made and heartland
Sun Dec 4, 2016, 01:04 PM
Dec 2016

appeal might make it a marketing tool for Trumplandia. My friend bought new appliances and was disappointed. The people fixing the appliances were nice and on time but one shouldn't have to see a repairman more than once and this wasn about multiple new appliances , not one , all new

lunasun

(21,646 posts)
19. They should have been what Amazon is today with the history of catalog shopping the company has
Sun Dec 4, 2016, 12:50 PM
Dec 2016

As for KMART they seem done

marybourg

(12,540 posts)
27. Yes. They gave up the catalog
Sun Dec 4, 2016, 02:41 PM
Dec 2016

just before they could have piggy-backed it onto the internet. What a waste of merchandising experience.

Response to lunasun (Reply #19)

 

Travis_0004

(5,417 posts)
24. My water heater is from sears
Sun Dec 4, 2016, 02:11 PM
Dec 2016

It was installed in 1977, so it turns 40 next year. At this point I just want to see how long it will last.

wishstar

(5,267 posts)
26. Penney's is now selling appliances
Sun Dec 4, 2016, 02:37 PM
Dec 2016

I was surprised to see half of the entire upstairs of my local Penney's converted to be full of stoves, washers, fridges, large appliances last week, and wondered if they must think Sears is going under soon and they are positioning to take advantage of the market opening if Sears folds, since some Penney's are located in same malls as Sears. Their shift into appliances is going to further hurt Sears sales.

Freddie

(9,232 posts)
41. Penney's sold appliances years ago
Sun Dec 4, 2016, 03:47 PM
Dec 2016

We got a TV and our first VCR at Penney's, back in the 80's they sold appliances and had their own brand IIRC. They stopped when they decided to concentrate on clothing and domestics (curtains, bedding, etc.). Smart move to get back into appliances. The mall near us has Sears, Penney's, Macy's and a big empty store that used to be a Boscov's.

blm

(112,920 posts)
28. Eddie Lampert applied Ayn Rand's business principles and ruined SEARS.
Sun Dec 4, 2016, 02:45 PM
Dec 2016

That fact just doesn't get mentioned enough.

Response to FarCenter (Original post)

Freddie

(9,232 posts)
42. Watch for liquidation sales!
Sun Dec 4, 2016, 03:50 PM
Dec 2016

Our local Kmart closed last spring and they brought in massive truckloads of clothes (mostly women's) and sold the stuff ridiculously cheap. I got bagfulls of tops, sweaters and pants some for $2 and $3.

Response to Freddie (Reply #42)

csziggy

(34,120 posts)
46. During going out of business sale at the local KMart
Sun Dec 4, 2016, 06:31 PM
Dec 2016

I picked out a number of things to buy - but couldn't buy anything. I waited in line with several other people and no one showed up to ring up our purchases. After ten or fifteen minutes I gave up and left my cart full of stuff at the front of the store.

That store had been a terrible place to shop for years before it closed. The shelves were never well stocked, there were never any salespeople to help, and it was always dirty. And that was decades before KMart and Sears were owned by the same group.

Initech

(99,915 posts)
37. How much did the executives loot and pillage from Sears?
Sun Dec 4, 2016, 03:23 PM
Dec 2016

Seems to me that this is becoming another Borders - classic case of "take the money and run".

 

FarCenter

(19,429 posts)
45. In the case of Sears, the pillager is Eddie Lampert, hedge fund operator
Sun Dec 4, 2016, 06:28 PM
Dec 2016
In July 2016 he held 28% of shares in Sears Holdings Corp worth of approximately $408 million.

...

Lampert is an avid follower of Ayn Rand and has used elements of Rand's philosophy to guide his business decisions.



https://en.wikipedia.org/wiki/Edward_Lampert

I think that the basic scheme was based on the fact that Sears owned a huge amount of real estate that was carried at historical acquisition cost and was worth a lot more than showed up as assets on their books. This real estate could be sold to real estate trusts and then leased back from the trusts. The proceeds from the sales would find their way to Lampert's pockets.

MFM008

(19,776 posts)
38. A pity
Sun Dec 4, 2016, 03:31 PM
Dec 2016

When my dad was alive he would go to the big Sears store in the Tacoma Mall first.
Our furniture. .carpets..toy's. ..all came from Sears. It was the middle class...now going the way of the middle class.

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