Eddie Lambert the CEO is a hedge fund guy who has been paying in (This is an example, not exact numbers.) 60 cents on the dollar in cash and debt and taking out $1.00 in real estate sales, selling brands etc.
Basically the CEO was Sears’ major investor and he could do as he wished with the company and kept stripping it of assets while doing the minimum from outside investing to keep it solvent.
$137 million in debt this week hit and when he knew the gig was up and he’d be going upside down in the deal he resigned.
Meanwhile his firm collected on all the divestitures.
“Eddie Lambert the CEO is a hedge fund guy who has been paying in (This is an example, not exact numbers.) 60 cents on the dollar in cash and debt and taking out $1.00 in real estate sales, selling brands etc.”
Sounds bad but could we say the basic problem is that customers have found other places to do their shopping?