This. Is. Nuts. So ESL is going to save Sears? Can’t we make this sad abomination go away now?

Sears is unfortunately beyond the point of evolving or transforming with the times. It’s very doubtful that Sears has any future, even if they follow the recommendations of the ESL Investment Group. Sears might be able to buy some time, yet ultimately the brand has been so diluted and overloaded with significant debt that any hope of a financial turnaround is next to impossible.

Similar to Toys “R” Us’s very unfortunate end, Sears’ only chance of survival is if they are acquired and that their debts are taken on. It is a sad ending to a once iconic retailer, who once dominated and redefined what mass merchandising could be.

This is not about saving Sears because, frankly, Sears is now well beyond saving. There is no business strategy here. No long term thinking. No vision. What this is about is maximizing the gains for ESL before the inevitable happens and Sears collapses.

Having vultures pick over the withered carcass of Sears is a sad end to a once world-renowned retailer. It is the result of terrible, awful management.

This has become a sad and sick story! I fell out of my chair when I read the following in the article: “Mr. Lampert has a plan to keep Sears Holdings going, but will it help revive the retailer or just allow ESL to get more value from its investment before the decision to liquidate its remaining assets are made?” ENOUGH SAID …

ESL may walk away with the prized brand assets and real estate portfolio that Lampert always coveted, but Sears as an ongoing retail operation is doomed sooner or later. This has been true for many years, despite the brave talk of a “transformation,” starting with the shameful lack of capital investment for nearly 15 years. At this point Sears has become irrelevant in some markets and invisible in others (such as here in Milwaukee), so any chance of a revival is slim-to-none. Why any investor would buy into this fantasy today is beyond me.

Sears seems to be in the last few moves of the LBO jenga game where the last assets are pulled from the tower by ESL, leaving an empty shell to fall on the employees and vendors. There is no save left in this one.

It’s hard to imagine that Mr. Lampert authorized the wording of the filing with a straight face! While I realize these corporate financial gymnastics occur every day, it would be refreshing if some honesty would shine through. It’s about extracting money while continuing to take everyday investors’ money.

I used to work for Sears, and it’s tragic to see this abomination (thanks, Paula!) come about. There’s no discussion here … Eddie Lampert figured out a way to enrich himself by creating the world’s longest liquidation sale for this century-old brand. It’s very sad.

Having first-hand experience in a corporate environment led by capital infusion, I have learned that the money is always secondary to strategy and implementation if success is to be achieved. Those that already pronounce Sears “dead on arrival” are most likely correct. Years of neglect and bad decisions are very difficult to overcome. If there is an ember of hope still glowing at Sears, it lies in the ability to reinvent itself as a legitimate omnichannel player, rebuilding its internal brands and finding a way back to consumer relevance.

Lampert is posturing against a different focus point than most think — and it’s about control. More importantly, Sears still sells merchandise. As a matter of fact over $2 billion worth in the last quarter — and at strong gross margins. About nine months back, Sears was still a top 35 retailer in the U.S. If they don’t go under, Sears revenue will still exceed those of 2017 retail darlings like Sephora, Hobby Lobby or Sprouts. No, this is about control of the organization. Falling into chapter 11 pushes the company into court and possibly debtor control — where Lampert will no longer have the same level of influence. Lampert has been smart by putting Seritage (real estate) and ESL (capital) investments in to maintain this control, but with other debtors in the mix — more specifically the PBGC representing over 100,000 pensioners this control can be diluted, and bankruptcy court judges will have final say. Lampert’s intent is to effectively restructure debt without going to chapter 11 (and avoiding chapter 7 liquidation). Turnarounds can… Read more »

The capital structure around Sears is unique and revolves around the roles that Mr. Eddie Lampert holds: as Sears CEO, main shareholder, lender and real estate landlord (via ESL Investments). There is no doubt that Mr. Lampert’s pursuit of a Sears transformation is real (even if it appears to be a moving target) as evidenced by the debt drawdown plan, shuttering unprofitable stores, shedding of assets, and so on. We can argue the (de)merits of the strategy: its appropriateness, timing, and execution over the past several years – but historical share price, quarter to quarter performance, sales projections, and company bond pricing all point to disappointing business results and a dire future.

Regardless of all that, the twist is that for Mr. Lampert the downside is greatly limited by capital structure design. Wearing two hats as retail and hedge fund CEO, the former became a herculean task and so the pivot to extract value via his hedge fund role.

This has been Lampert’s plan from day one. He knew Sears was always worth more dead than alive. It was all about the real estate and the sell off of brands is just gravy.