Sears - more bad news

[Stu Chapman]

Sears Canada announced today that it lost C$144 million in the first quarter of 2017 and may have to be sold or seriously restructured.

This morning Sears Canada filed for creditor protection which is the first step into receivership. They commented that they were not likely capable of paying their bills. It is expected that the company will be sold off in various parts. Interesting is that today a "pop-up" storefront location opened in downtown Toronto. It is owned by Sears.

Stu Chapman

[dictator27]

It has been obvious for some time that the Sears near us is dying a slow, painful death. A major rebuilding of the mall it is in seemed to indicate that the mall had little confidence in Sears survival. Prior to the rebuild there were about a dozen stores in the section where Sears is. After the rebuild there are only two stores, Sears and a British Columbia Government liquor store. The rest of them became a parking lot. It is the only part of the mall where it is easy to find parking.

[Greenstude]

This morning Sears Canada filed for creditor protection which is the first step into receivership. They commented that they were not likely capable of paying their bills. It is expected that the company will be sold off in various parts. Interesting is that today a "pop-up" storefront location opened in downtown Toronto. It is owned by Sears.

Stu Chapman

Today trading in Sears Canada shares was discontinued before the stock markets opened. They have lost 80 per cent of their value this year.

Later in the day, the closing of 59 stores was announced, including 20 of their major stores. Layoffs will affect 2,900 employees. This is about one-third of their properties.

Our local Sears store is one that will remain open. It is an anchor store in the region's largest mall. The only things that I have bought there in the last 5 years are a battery and a strap for my watch. My business goes to other stores, locally owned ones where possible, and not to on-line vendors.

[556063]

Canadian Operation Files Bankruptcy;

http://www.zerohedge.com/news/2017-06-22/sears-canada-announces-bankruptcy

[DEEPNHOCK]

And the downward spiral increases....

http://globalnews.ca/news/3578836/sears-canada-files-motion-to-suspend-retiree-benefits/

(snippet copy. See link for complete article)

Sears Canada has filed a motion with the Ontario Superior Court of Justice to seek, among other things, permission to suspend certain monthly payments to its pension plan and post-retirement health and life insurance benefits, the company announced today.
READ MORE: Here are the 59 Sears Canada stores set to close and where you can expect liquidations
Citing cash constraints, Sears said it will seek court approval to suspend $3.7 million worth of monthly payments toward the defined benefit component of the Sears Registered Retirement Plan. The company is also hoping to temporarily stop pouring money into its post-retirement health and dental benefit plan, which costs approximately $800,000 a month on average before tax, and its post-retirement life insurance premiums, for which payments amount to $245,000 monthly plus tax.
WATCH: What rights do Sears employees have?

Sears said the $450 million it secured from creditors to help rebrand itself require that it comply with a budget that does not provide for the above-listed payments. The retailer is waiting for a court hearing on July 13.
READ MORE: 2,900 Sears Canada employees won’t receive severance after layoff
The company, which filed for creditor protection on June 22, has previously said it intended to stop some payments to its retirement plan and benefits plan for retirees.
Sears also recently announced it would not be able to provide severance packages for the 2,900 employees laid off amid corporate restructuring.
The company is continuing operation while it seeks to reinvent itself to emerge as a leaner, more focused operation.
In today’s announcement, it also said it’s seeking court approval to start soliciting investors who might be interested in buying or investing in the Sears Canada Group’s business, assets and/or leases.
It is also hoping the court will extend until Oct. 4 the injunction that halts actions by its creditors to collect debts.

[wittsend]

" Sears said the $450 million it secured from creditors to help rebrand itself ... "

The only positive thing I've seen recently regarding Sears was a 'back to school commercial' that was somewhat creative. Two kids are talking in a school hallway and they step through an open locker into a room filled with nicely arranged clothing. Likely far too little, far too late but a good departure from what typically was a "Brady Bunch shops at Sears" commercial.

[Greenstude]

Sears Canada announced today that it has applied for Court permission to close all its remaining stores and outlets, about 130 locations in all.

[BobPalma]

Finally, after a "Going Out of Business" sale that lasted for months because they kept bringing in new merchandise, the K-Mart store here in Brownsburg finally closed for good last week. Signage is down and the place is vacant. Most of us wondered how it lasted this long. BP

[JoeW]

I have not, and will not, shop at a Sears since 1980. They sent me an application for a Sears charge card, which I filled out and returned. About a month later I got a letter back saying the account had been denied. Not because of my credit, I had a mortgage (11%, remember them days?), or my income, but due to my OCCUPATION (industrial maintenance). Their letter stated that "people in that occupation had a high rate of non payment". No consideration of my credit worthiness, just lumped in with deadbeats based on my occupation.
As I was still accumulating tools for my job, I started buying Snap-On, Mac, SK,Dayton, etc. I would estimate since 1980, I have spent in excess of $100,000 on tools and equipment for work and personal use. In the last 14 years, as a partner in a millwright company, the company has spent over $300,000 on tools and equipment. Not all that has been bought could be obtained at Sears, but I'll bet 75% could have been. In an emergency (broken/lost tool) I will try Home Depot, Tractor Supply, Menards, etc, depending on where in the country we are.

Sears loss, not mine.

I had a bad experience with Sears in 1972. I ordered a clock from them and was charged $88 when I ordered it. Several months later I had not received the clock and asked for a refund. They refused and still owe me the money. I have not stepped inside a Sears since then and never will.

[DEEPNHOCK]

I had an SBC card (Sears Best Customer) for quite a while.
My girlfriend worked at Sears....
Then, they cancelled my card and offered me a Sears Mastercard in its place.
Declined their higher % offer.
Haven't bought anything from Sears in decades. Exchanged a few sockets is all.
So Sears is on the downslide... Merging with K-Mart was pure....genius...
Two drunks holding each other up....
RIP Sears... You did this to yourself, and you did it on purpose.
RIP K-Mart.... Your days are numbered.
Wal-Mart... Are you paying attention? Macon GA is getting a new Amazon distribution center...
The clock is ticking....

[jnormanh]

During the past year we've got some great bargains at Sears.

A Panasonic TV, $700 at Costco, on sale for $350 at Sears.

A double oven, stainless steel, $1200 at Sears, $1900 elsewhere. It's labelled "Kenmore", but is made by Frigidaire, the same as most other brands at Lowe's, Home Depot, etc.

Bargains all over Sears. Get them now, they won't be around much longer.

[Greenstude]

To use automotive terminology, it appears to me that the senior decision-makers at Sears have believed for a long time that running a "salvage yard" is preferable to running a "restoration shop".

[Gunslinger]

Wal-Mart... Are you paying attention? Macon GA is getting a new Amazon distribution center...
The clock is ticking....

No business has a right to survive...they have to continually earn it. There's always someone on the horizon who's hungry and wants your business and is willing to put in the effort to take it away. Once they get fat and happy it can get done to them eventually.

[Stu Chapman]

Sears Canada announced today that it has applied for Court permission to close all its remaining stores and outlets, about 130 locations in all.

What is tragic is that 12,000 employees, some of whom have 35 years service, will likely not receive any severance and possibly reduced to no pension. I don't know about the reasons for Sears' decline in the U.S. but in Canada, management simply have not been capable of running such an operation.

Stu Chapman

[DougHolverson]

Finally, after a "Going Out of Business" sale that lasted for months because they kept bringing in new merchandise, BP

You'd think they'd be a mom and pop stereo and electronics shop.....