Retail Bankruptcies

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Addie
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Retail Bankruptcies

#1

Post by Addie »

CNBC
Sears may be down to its last 24 hours. Retailer likely liquidates if no bid comes in tomorrow.

Sears, the 125-year-old icon, has 24 hours to survive.

The employer of more than 68,000 filed for bankruptcy in October. Its last shot at survival is a $4.6 billion proposal put forward by its chairman, Eddie Lampert, to buy the company out of bankruptcy through his hedge fund, ESL Investments. ESL is the only party offering to buy Sears as a whole, people familiar with the situation tell CNBC. Without that bid or another like it, liquidators will break the company up into pieces.

But as Lampert stares down a deadline of Dec. 28 to submit his offer, he is quickly running out of time. As of Thursday afternoon, Lampert had neither submitted his bid, nor rounded up financing, the people familiar said. Should Lampert submit a bid, Sears' advisors would have until Jan. 4 to decide whether he is a "qualified bidder." Only then, could ESL take part in an auction against liquidation bids on Jan. 14.

Nonetheless, the quickly approaching cutoff puts Sears the closest to death it has ever been. Should Lampert miss the deadline, it would put Sears and Kmart on the path to liquidation. That process would take weeks, according to the guidelines laid out by the bankruptcy court. But the process has also already slowly begun, with the retailer weighing the closure of 50 to 80 more stores, CNBC has reported.

Once the nation's biggest retailer, it was also its first "everything store," stocking everything from jewelry to clothing, from hardware to prefabricated homes. But the department store industry has struggled over the past half-decade, as the mall has become less convenient and apparel more casual. Rival J.C. Penney is also feeling the pressure of this trend, on Wednesday its shares dipped below a $1 for the first time.
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Re: Retail Bankruptcies

#2

Post by Volkonski »

Sears says it's closing 80 more stores in March, faces possible liquidation

https://www.cnbc.com/2018/12/28/sears-c ... ation.html
Sears plans to close 80 more stores across the U.S. in March, as the bankrupt retailer may be forced to liquidate its business entirely, CNBC has learned.

The department store operator told employees Thursday that it plans to shut another round of Kmart and Sears stores next year, in addition to those that are already in the process of going dark. When Sears filed for bankruptcy on Oct. 15, it was still operating a little under 700 stores. At that time, the company said it would close 142 unprofitable stores. In November, it announced the closure of 40 additional stores.

Sears told workers this week that it expects to begin liquidation sales at the 80 stores (addresses listed below) in two weeks. The accompanying Sears Auto Centers will also be shut.
The Kmart on the North Fork closed this past fall. The Sears here in our Texas city closed 2 weeks ago.
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neonzx
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Re: Retail Bankruptcies

#3

Post by neonzx »

Sears Holdings Corp Chairman Eddie Lampert has submitted a roughly $4.6 billion takeover bid for the bankrupt U.S. retailer
The offer came after Sears’ existing lenders Bank of America Corp and Citigroup Inc, as well Royal Bank of Canada, which was not previously a lender, agreed to provide a $950 million asset-based loan and a $350 million revolving credit line to back Lampert’s bid, the sources said.

Lampert’s bid would preserve about 425 stores that Sears has yet to close, and secure the jobs of 50,000 workers out of the 68,000 employed by the retailer, the sources said.

Some of Lampert’s bid relies on $1.8 billion of Sears debt that his hedge fund ESL Investments Inc already holds and Lampert plans to forgive to back his offer, the sources said. The bid also has about $400 million in financing from non-bank lenders, according to the sources.

It is possible that Lampert’s bid for Sears will be rejected or otherwise fall through, the sources cautioned, asking not to be identified because the matter is confidential.
:snippity:
Addie
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Re: Retail Bankruptcies

#4

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WaPo
As a grocery chain is dismantled, investors recover their money. Worker pensions are short millions.

MUNCIE, Ind. — Once the Marsh Supermarkets chain began to falter a few years ago, its owner, a private-equity firm, began selling off the vast retail empire, piece by piece. The company sold more than 100 convenience stores. It sold the pharmacies. It closed some of the 115 grocery stores, having previously auctioned off their real estate. Then, in May 2017, the company announced the closure of the remaining 44 stores.

Marsh Supermarkets, founded in 1931, had at last filed for bankruptcy.

“It was a long, slow decline,” said Amy Gerken, formerly an assistant office manager at one of the stores. Sun Capital Partners, the private-equity firm that owned Marsh, “didn’t really know how grocery stores work. We’d joke about them being on a yacht without even knowing what a UPC code is. But they didn’t treat employees right, and since the bankruptcy, everyone is out for their blood.”

The anger arises because although the sell-off allowed Sun Capital and its investors to recover their money and then some, the company entered bankruptcy leaving unpaid more than $80 million in debts to workers’ severance and pensions.

For Sun Capital, this process of buying companies, seeking profits and leaving pensions unpaid is a familiar one. Over the past 10 years, it has taken five companies into bankruptcy while leaving behind debts of about $280 million owed to employee pensions.
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Re: Retail Bankruptcies

#5

Post by Volkonski »

Sears prepares for possible liquidation as Chairman Eddie Lampert's bid fails

https://www.chicagotribune.com/business ... story.html
Sears Holdings Corp. is preparing to potentially wind down the iconic retailer after Chairman Eddie Lampert's bid to buy several hundred stores out of bankruptcy fell short of bankers' 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 Lampert's 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 "R" 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 Lampert's 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 Sears's parts, including real estate and intellectual property, such as its brand.

:snippity:

Gaps remained in some of the financing and the plan wouldn't have provided enough cash to cover costs incurred in the bankruptcy, the people said. It also undervalued inventory and other assets relative to what liquidators were promising to pay.
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Re: Retail Bankruptcies

#6

Post by Volkonski »

CNN Breaking News

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Sears tells a bankruptcy court it has accepted a revised bid from a hedge fund that gives it a chance to avoid shutting down https://cnn.it/2FmshgJ
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Re: Retail Bankruptcies

#7

Post by Addie »

Green Bay Press-Gazette
Shopko files for bankruptcy, will close 105 stores, including 16 in Wisconsin

ASHWAUBENON - Shopko has until March 14 to find a way through reorganization or it will have to liquidate its assets, according to bankruptcy court documents filed Wednesday.

Shopko's parent company, Specialty Retail Shops Holding Corp., and 12 of its subsidiaries filed for Chapter 11 bankruptcy protection from creditors, citing excessive debt and a decline in brick-and-mortar retail store sales as customers' shopping patterns changed.

With an eye toward shutting down under-performing stores, the company announced that it will close 105 stores, including the company's original store at 216 S. Military Ave. in Green Bay, according to a website set up to provide information on the reorganization. ...

Other Wisconsin stores on the list are in Neenah, Menasha, Seymour, Manitowoc, West Bend, Stevens Point, Grafton, Plover, Sussex, La Crosse, Mauston and two stores in Madison. Shopko Express stores in Appleton and Buchanan are also on the list.

In court documents, the company reported assets of less than $1 billion and liabilities of between $1 billion and $10 billion. It also laid out a schedule through April 15 that the company must meet in order to emerge from bankruptcy as a going concern that can still operate a smaller company.

Companies and individuals must file claims for unpaid bills by Feb. 15. Government entities have until July 16 to file a claim.
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Re: Retail Bankruptcies

#8

Post by Addie »

WaPo: CEO’s latest bid to save Sears would leave pensioners high and dry, government says
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Re: Retail Bankruptcies

#9

Post by AndyinPA »

Addie wrote: Tue Jan 29, 2019 2:29 pm
WaPo: CEO’s latest bid to save Sears would leave pensioners high and dry, government says
Without reading the article, I can say that's nothing new. My dad worked for a steel mill In Pittsburgh that went belly up in the 80s. He got his pension, pennies on the dollar, from the government pension fund that pays when corporations go out of business and screw their employees and pensioners in the process.

I remember when he died, the neighbor across the street, who had also been screwed, came over and said if you find any insurance policies from J&L, don't try to cash them. They are worthless.
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Re: Retail Bankruptcies

#10

Post by neonzx »

Addie wrote: Tue Jan 29, 2019 2:29 pm
WaPo: CEO’s latest bid to save Sears would leave pensioners high and dry, government says
But the pensioners would end up being screwed even without a buyout bid. In bankruptcy, liquidation and auctioning off the Sears assets piece-meal, the spoils would have gone to creditors. There wouldn't be any remainder for pension fund liabilities. :(
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Re: Retail Bankruptcies

#11

Post by MN-Skeptic »

neonzx wrote: Tue Jan 29, 2019 2:38 pm
Addie wrote: Tue Jan 29, 2019 2:29 pm
WaPo: CEO’s latest bid to save Sears would leave pensioners high and dry, government says
But the pensioners would end up being screwed even without a buyout bid. In bankruptcy, liquidation and auctioning off the Sears assets piece-meal, the spoils would have gone to creditors. There wouldn't be any remainder for pension fund liabilities. :(
My husband had a choice between a pension or a lump sum when he retired from his mega corporation. I think you'll find more folks like my husband who will opt for the lump sum, especially when they read stories such as these.
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Re: Retail Bankruptcies

#12

Post by DejaMoo »

neonzx wrote: Tue Jan 29, 2019 2:38 pm
Addie wrote: Tue Jan 29, 2019 2:29 pm
WaPo: CEO’s latest bid to save Sears would leave pensioners high and dry, government says
But the pensioners would end up being screwed even without a buyout bid. In bankruptcy, liquidation and auctioning off the Sears assets piece-meal, the spoils would have gone to creditors. There wouldn't be any remainder for pension fund liabilities. :(
In a just world, companies would be required to guarantee pension funds, or at the very least make them one of the primary creditors in the event of bankruptcy.
I've heard this bull before.
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Re: Retail Bankruptcies

#13

Post by Tarrant »

DejaMoo wrote: Tue Jan 29, 2019 4:07 pm
neonzx wrote: Tue Jan 29, 2019 2:38 pm
Addie wrote: Tue Jan 29, 2019 2:29 pm
But the pensioners would end up being screwed even without a buyout bid. In bankruptcy, liquidation and auctioning off the Sears assets piece-meal, the spoils would have gone to creditors. There wouldn't be any remainder for pension fund liabilities. :(
In a just world, companies would be required to guarantee pension funds, or at the very least make them one of the primary creditors in the event of bankruptcy.
Underfunding pensions shouldn’t be legal, and they absolutely shouldn’t be raidable. Those are ageeements made with employees. When times are bad, companies underfund and say they can’t afford it and say they’ll make it up later. When times are good, they say returns will be so good they don’t have to fund it as much.

It’s also infuriating because people take a lower salary in exchange for these benefits. Sometimes unions have negotiated reduced raises in exchange for better retirement plans, only for companies to then shortchange on the retirement obligations and leave the employees - who gave up salary to get that benefit - in the lurch. My husband is sticking with his job for a few more years - a job he’s underpaid in - because his pension fully vests in 3 more (won’t get paid out until retirement age, but at least it’ll supposedly be there). If that benefit never materializes, then there was no point in sticking with the lower salary.
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Re: Retail Bankruptcies

#14

Post by AndyinPA »

I hear all the time how the corporations' only obligation is to make money for their shareholders, as if that's a good thing. Every time i hear that I scream at the TV (or article, or, occasionally, person) that that's because corporations took that power unto themselves. That's not how corporations started out in this country and the Founding Fathers were as opposed to corporations as they were British rule.

http://reclaimdemocracy.org/corporate-a ... ations-us/
When American colonists declared independence from England in 1776, they also freed themselves from control by English corporations that extracted their wealth and dominated trade. After fighting a revolution to end this exploitation, our country’s founders retained a healthy fear of corporate power and wisely limited corporations exclusively to a business role. Corporations were forbidden from attempting to influence elections, public policy, and other realms of civic society.


We have money in the stock market, so I'm not opposed to making money in stocks. But personally I feel that the corporation also has an obligation to its employees and the environment. Capitalism destroys democracies, unless it it checked and regulated.
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Re: Retail Bankruptcies

#15

Post by Addie »

:like:
AndyinPA wrote: Tue Jan 29, 2019 5:06 pm Capitalism destroys democracies, unless it it checked and regulated.
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Re: Retail Bankruptcies

#16

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CNBC: Casualties of Sears' downfall will get their day in court Monday
Sears Holdings unsecured creditors will head to bankruptcy court in White Plains, New York on Monday, Feb. 4 to protest Eddie Lampert's $5.2 billion bid to save the company, which owns both Sears department stores and Kmart.

The offer is the only one that would keep Sears alive, but its unsecured creditors allege misdealing by Lampert under his tenure as chairman and CEO.

Judge Robert Drain will hear the objections and rebuttals, and make an ultimate ruling regarding the company's future.
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Re: Retail Bankruptcies

#17

Post by Volkonski »

CNN Breaking News

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@cnnbrk
17m17 minutes ago
More
Clothing chain Charlotte Russe files for bankruptcy and
plans to close 94 of its 500 stores
, the company says https://cnn.it/2BlOA35
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Re: Retail Bankruptcies

#18

Post by Notorial Dissent »

Volkonski wrote: Mon Feb 04, 2019 4:25 pm
CNN Breaking News

Verified account

@cnnbrk
17m17 minutes ago
More
Clothing chain Charlotte Russe files for bankruptcy and
plans to close 94 of its 500 stores
, the company says https://cnn.it/2BlOA35
There are also several others likely to follow; Anne Taylor, Penny's, Bebe, stein Mart, Burlington, Men’s Wearhouse, Joseph A. Bank, J Crewe, Pier 1, and Office Depot/Office Max, and several others that don't come to mind right now.
The fact that you sincerely and wholeheartedly believe that the “Law of Gravity” is unconstitutional and a violation of your sovereign rights, does not absolve you of adherence to it.
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Re: Retail Bankruptcies

#19

Post by Chilidog »

The Dress Barn in the mall my wife works at just closed. The manager told her that it was likely that the entire chain would go under in the next year or so.
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Re: Retail Bankruptcies

#20

Post by Volkonski »

Petland Discounts Closing All Stores, Including 8 On Long Island

https://patch.com/new-york/fivetowns/pe ... cebook.com
Petland Discounts, the Tri-State area pet supply company, is closing all of its stores in New York, including eight on Long Island.

The closing comes after the death of the company's sole owner, Neil Padron, to bladder cancer earlier this month, according to Pet Product News. Padron was 74.

The company had 69 locations across New York, and all of them are expected to close by April 18, according to filings with the state Labor Department. The closures will leave 367 people across the state without jobs.

The first Petland Discounts store opened in Glen Oaks in 1965, according to Pet Product News, and grew to more than 100 stores across New York, New Jersey and Connecticut.
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Re: Retail Bankruptcies

#21

Post by DejaMoo »

Politically, it would be useful to start a meme that one of the big reasons for the drop in retail business is because people no longer feel safe. Why regularly go out to shop and risk being a victim of a mass shooter? Safer to do most of your shopping online and have it delivered.
I've heard this bull before.
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Re: Retail Bankruptcies

#22

Post by Estiveo »

Yeah, but, even the UPS guy has guns.
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Re: Retail Bankruptcies

#23

Post by Notorial Dissent »

PetSmart can be added to the list as well as Cabella's/Outdoor world/L L Bean/etc. The downfall of many of the main big box stores has been attributed to e-commerce, and in many cases it makes sense. A good bit of it though, I think, is even more attributable to changes in taste and lifestyle and that took down Toyland, Toys R Us and places like that.
The fact that you sincerely and wholeheartedly believe that the “Law of Gravity” is unconstitutional and a violation of your sovereign rights, does not absolve you of adherence to it.
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Re: Retail Bankruptcies

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Post by MN-Skeptic »

Notorial Dissent wrote: Tue Feb 05, 2019 2:11 pm PetSmart can be added to the list as well as Cabella's/Outdoor world/L L Bean/etc. The downfall of many of the main big box stores has been attributed to e-commerce, and in many cases it makes sense. A good bit of it though, I think, is even more attributable to changes in taste and lifestyle and that took down Toyland, Toys R Us and places like that.
Cabela's was acquired by Bass Pro Shops in September 2017. I have no idea how Bass Pro Shops is doing financially though.
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Re: Retail Bankruptcies

#25

Post by Estiveo »

MN-Skeptic wrote: Tue Feb 05, 2019 2:31 pm
Notorial Dissent wrote: Tue Feb 05, 2019 2:11 pm PetSmart can be added to the list as well as Cabella's/Outdoor world/L L Bean/etc. The downfall of many of the main big box stores has been attributed to e-commerce, and in many cases it makes sense. A good bit of it though, I think, is even more attributable to changes in taste and lifestyle and that took down Toyland, Toys R Us and places like that.
Cabela's was acquired by Bass Pro Shops in September 2017. I have no idea how Bass Pro Shops is doing financially though.
There's one on the way to my prefered dispensary and another by my brother's house in Manteca; their parking lots are always packed if that's any indicator.
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