Posted on 09/14/2016 2:25:22 PM PDT by PROCON
Moody's analysts say Sears and Kmart don't have enough money — or access to money — to stay in business.
In a note published Wednesday, the analysts downgraded Sears' liquidity rating, saying the company is bleeding cash and will have to continue to rely on outside funding or the sale of assets, such as real estate, to sustain operations.
"We recognize the risks associated with relying on these sources and continued shareholder support to finance its negative operating cash flow which is estimated by Moody's to be approximately $1.5 billion this year," the analysts wrote.
Kmart in particular is at risk of shutting down, according to Moody's.
(Excerpt) Read more at businessinsider.com ...
eating their seed corn
Sears had all the infrastructure in place with their huge catalog operations to be Amazon, but just didn’t capitalize.
Sad indeed I used to shop at Sears but not anymore.
K Mart couldn’t even run a store in Detroit it closed down years ago. I haven’t been in a K Mart in over 10 years.
Had Sears jumped into online sales early they could be sitting where Amazon is now.
I haven’t been in a Sears in many years, and my area doesn’t have a Kmart or a Sears.
Spot on analysis. They could have had it all, but had dumb management with no fresh thinking. Dumb leaders will sink a company every time. Likewise if a dumb female politician is elected to the presidency, the U.S.A. shutdown will be imminent. But that's another story...
My #5, GMTA!
With 731 stores they could easily sell have of them in the areas that are the poorest performers to stay afloat for awhile. However, their problem is really with the products they carry. Not worth the prices for the quality. They did have a good run of 130 years though. Perhaps they will move to become more of a Amazon type of store. In the early days they used to have a very large mail order business.
Sad. Used to be a manager for a Kmart store in Ohio 8 years ago. Bummer deal.
Biggest mistake Sears ever made was buying KMart
It’ll be a sad day when Sears closes the last store. Our grandparents may remember they even sold pre-fab houses (I wonder what the prices would be nowadays):
http://www.searsarchives.com/homes/1908-1914.htm
I remember thinking...wouldn't it be great if Sears went bankrupt? Well, 35 years later, I got my wish!
Recall the mega Sears distribution warehouse facility on Lawndale Ave? I lived one block from it and used to cruise the “returns” retail bins often. Great prices on their goods that had minor defects.
We gotta move these refrigerators, we gotta move these color TV’s That aint workin!
Some folks were caught flat footed when it came to the internet.
From my first knowledge of it, I saw the possibilities.
Man is certainly an inventive creature.
While Ford sends even more jobs to Mexico.
We had a huge Sears about a mile from my home where I grew up. Multi-story, main building took up most of a block, with lesser buildings surrounding it and across the street, and lots of parking lots. Automotive stuff across the street, not including tires in a back parking lot. A gardening supply building next door. My dad would take me almost every weekend. They had a cafeteria inside where I could get hotdogs, popcorn and soda. Anything you could imagine was for sale at Sears. Get your clothes, appliances, tools, plumbing items, car repairs, gardening items, etc. About the only thing they didn’t have was groceries. All gone. Sears indeed was a great store.
We have both Sears and Kmart. Their parking lots are empty and the store barely have any people other than the employees. Walmart, OTOH, is difficult to find a parking space, and the lines are always long...............
Actually K-Mart bought Sears...
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