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Sun Jan 6, 2019, 05:11 PM

Sears Prepares for Possible Liquidation as ESL Bid Fails

(Bloomberg) -- Sears Holdings Corp. is preparing to potentially wind down the iconic retailer after Chairman Eddie Lampertís bid to buy several hundred stores out of bankruptcy fell short of bankersí qualifications, people with knowledge of the matter said.

The retailer started laying the groundwork for a liquidation after meetings Friday in which its advisers weighed the merits of a $4.4 billion bid by Lampertís hedge fund to buy Sears as a going concern, said the people, who asked not to be identified because the discussions are private. If the 125-year-old retailer does die in bankruptcy -- like Toys ďRĒ Us in 2018, and Borders Group Inc. in 2011 -- it would mark the largest fatality yet in the retail apocalypse prompted by a shift to online shopping.

While Lampertís ESL Investments has failed to convince the bankers of the viability of its bid, it could still make last-minute improvements before a status hearing on Tuesday. Lampert also has outlined a back-up plan in which ESL would pursue the purchase of some of Searsís parts, including real estate and intellectual property, such as its brand.

Spokesmen for Sears and ESL declined to comment, as did a representative for Lazard Freres & Co., which is advising Sears.

https://www.msn.com/en-us/money/companies/sears-prepares-for-possible-liquidation-as-esl-bid-fails/ar-BBRR0pd?li=BBnbfcN

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Reply Sears Prepares for Possible Liquidation as ESL Bid Fails (Original post)
Yo_Mama_Been_Loggin Jan 6 OP
Gidney N Cloyd Jan 6 #1
SWBTATTReg Jan 6 #2
spinbaby Jan 6 #3
TexasBushwhacker Jan 6 #4
TheFarseer Jan 6 #5

Response to Yo_Mama_Been_Loggin (Original post)

Sun Jan 6, 2019, 05:54 PM

1. It's such lazy reporting to dismiss this as "prompted by a shift to online shopping"

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Response to Yo_Mama_Been_Loggin (Original post)

Sun Jan 6, 2019, 06:28 PM

2. Yes, I agree w/ you, lazy reporting. Sears at one time, had one of the best and largest ...

catalogues in the world and failed to capitalize on it. I'm sure that there were other management goof ups but this particular one stands out in my mind. I remember awaiting the days when the annual catalogue would come out...

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Response to SWBTATTReg (Reply #2)

Sun Jan 6, 2019, 07:53 PM

3. There are so many reasons for their failure

Our local Sears store before it closed featured horrible fluorescent lighting, dreadful polyester clothing, receipts that were miles long with various offers, aggressive appliance sales people who worked on commission, and tumbleweeds.

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Response to spinbaby (Reply #3)

Sun Jan 6, 2019, 08:00 PM

4. Yeah, the last time I was in a Sears was over 10 years ago

The store was an absolute dump. They've been going downhill for a very long time. With their catalog business, they should have been poised to jump into e-commerce like a boss, but they just never got their shit together. The merger with K-Mart was catastrophic.

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Response to SWBTATTReg (Reply #2)

Sun Jan 6, 2019, 08:10 PM

5. Also

The stock buy back in the mid 2000s that burnt through 6 billion in cash and did nothing to bolster the business. It didnít even stop the stock price from falling. Funny that cash would buy the entire business now.

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