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 ...
I'm reminded of Kodak which invented the digital camera in 1975.
Likewise if a dumb female politician is elected to the presidency, the U.S.A. shutdown will be imminent.
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She’s worse than dumb. She’s wicked. But your fundamental observation is correct.
A government of secrecy, retribution, corruption and lies would have no future. Turn out the lights, the party’s over.
I knew it wouldn’t last once they quit selling mail-order firearms.
My first job was with Sears. Even though it was just seasonal employment at Christmas time, I was proud to be working for a well respected company. Sad to see it come to this.
Another American icon bites the dust.
You couldn’t miss that gigantic red brick multistory warehouse, it was the biggest building by far on the north side of town.
“A sad end to a once great “Anything and Everything” store in Sears.”
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Growing up Sears was the goto store for a whole lotta things
Maybe 15 years ago I was shopping for a particular item in Doughlas, Georgia. There was a Wal-Mart and a K-Mart only a few hundred yards from each other.
I didn’t find my item but noted that the Wal-Mart had a huge parking lot which was nearly full. The K-Mart also had a large one but there must have only been 20-30 cars in the lot.
I was later talking to the manager of another K-Mart and mentioned to him my observation and fear that K-Mart was going to have to close pretty soon.
He agreed with me that there was a real problem but said they would not close at least for a while. He turned out to be right but I have no idea how they made it this far.
I must be too young to remember that Sears. I have vague memories of the tremendous in-store Christmas display with model trains from their downtown store, but after moving out to the mall location, it wasn’t great. Seems like the whole store smelled of tires from automotive, and their clothes leaned heavily to work clothes. Not much to like or want, other than appliances and tools.
Our local town used to have a Sears, Wards, Penneys, Oklahoma Tire and Supply Co(OTASCO), Firestone.
Now they are gone. And who remembers Woolworth? They used to be on all larger town squares!
Sears built a big new store here a few years ago. Parking lot is nearly always empty. K-Mart which looks pretty shabby always has some cars in its lot, but not many. Going into Sears is like one of those movies where all of the people have disappeared. It can’t be long for this world.
Sad to hear. I still like shopping at Sears and have bought all our major appliances and a lot of tools from them over the years. Also frequent their auto service area for tires, batteries and car service. Have always had great service.
They provide local jobs too and a significant tax base for our communities. Most folks don’t realize what we lose by shopping on line. The money will continue to get sucked out of our communities to some nebulous on line retailer located who knows where. Have seen it happen first hand.
That was caused by the 1968 Gun Control Act, not Sears.
Earlier this year I needed a socket set and got one at Sears. Come to find out, Craftsman is now made in China. I won’t be buying Craftsman tools anymore, and that was the only reason I had to go to Sears. Eddie Lampert has totally destroyed Sears, and now, the Craftsman brand.
You couldn’t miss that gigantic red brick multistory warehouse, it was the biggest building by far on the north side of town.
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Um . . . it was on the south side of town. 925 South Homan Avenue, Chicago, IL
My understanding is that Amazon got a pass. Because they didn't have a physical footprint in any state they weren't required to collect sales tax from consumers. However, Sears was.
Even if Sears had gone big into internet sales they still would have been at a disadvantage to Amazon because of this and because they had to maintain their stores rather than just a few warehouses and distribution centers like Amazon.
I think there are cases where there is nothing that a business can do to save itself. When PC's started getting replaced by laptops and then tablets and then smart phones, what are companies like HP and Compaq supposed to do?
Especially if venture capitalists are giving huge bundles of cash to start ups so they can design the replacement services and devices.
And Sears has nobody but themselves to blame.
They tore down 2/3 of it for the new shopping center and the remainder is still probably the largest warehouse building in the city.
Biggest mistake Sears ever made was buying KMart
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November 17, 2004 - KMart bought Sears.
Radio had the infrastructure to get a head start in the PC retail market, but their PC sucked.
I was replying to Rebelbase regarding the regional distribution center in Greensboro, NC.
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