Sears Holdings, the one-time giant retailer that has been teetering on the edge of bankruptcy for years now, announced this morning that, following yet another disappointing holiday season (shocking), they've initiated new discussions with lenders aimed at renegotiating terms on some $1 billion of "non-first lien debt."
According to a press release from the company, the debt concessions would be accompanied by another $200 million of cost cuts.
Sears Holdings Corporation announced today it has raised $100 million in new financing and is pursuing an additional $200 million from other counterparties. In addition, Sears Holdings has amended its existing second lien notes, maturing October 15, 2018, to increase their borrowing base advance rate for inventory and defer their collateral coverage test and restart it with the second quarter of 2018, and is in discussions with certain lenders regarding additional transactions to improve the terms on potentially more than $1 billion of its non-first lien debt.
The Company also outlined incremental actions to further streamline its operations to drive profitability, including cost reductions of $200 million on an annualized basis in 2018 unrelated to store closures.
Rob Riecker, Sears Holdings' Chief Financial Officer, said: "As previously announced, we are actively pursuing transactions to adjust our capital structure in order to generate liquidity and increase our financial flexibility. The new capital we have secured represents meaningful progress towards those objectives and demonstrates that we continue to have options to finance our business."
Of course, the most important part of this morning's press release is the following statement which serves as a not so thinly-veiled threat to junior creditors that any failure to grant financial concessions could result in a bankruptcy filing.
However, should the Company's efforts to complete these transactions not be fully successful, the Board will consider all other options to maximize the value of its assets.
The company also announced that November and December comp-store sales plunged 16%-17% year-over-year indicating that restructuring efforts implemented to date have done little to slow mounting losses. Sears’ disastrous holiday sales mark a sharp contrast to the solid gains enjoyed by many of its department store peers such as Kohl’s, J.C. Penney and Macy’s.
Meanwhile, Chairman and CEO Eddie Lampert reiterated in a blog post this morning that "many observers," including "outside lenders and our vendor community" aren't convinced that Sears can survive the "Retail Apocalypse."
While these actions have so far helped our Company survive the so-called “Retail Apocalypse”, many observers are not persuaded that Sears Holdings can be a viable competitor in the long term. It is obvious that to overcome such skepticism and obtain the support of outside lenders and our vendor community – which is crucial to the success of any retailer – we need to undertake further measures.
However, should our efforts to complete the refinancing not be fully successful, the Company’s Board will consider all other options to maximize the value of Sears Holdings’ assets.
Oh well...vendor support isn't that big a deal for retailers anyway, right?
Of course, as Sears management continues with their futile efforts to effectuate a restructuring via store closings and cost cuts, the far easier and faster solution, as demonstrated by Kodak, is right in front of their eyes...
SearsCoin is coming folks pic.twitter.com/yb5WfXkJX7
— zerohedge (@zerohedge) January 9, 2018
Comments
Dear Eddie,
Introduce SHLDcoin. Dipshits will pile into sears faster than a rabbit gets fucked.
Thank me later.
Fucked? Like proper fucked?
In reply to Dear Eddie,… by shizzledizzle
This whole Sears/KMart ordeal with quite a few others has become a "Of Mice And Men" situation. Just get it over with. There's no economy. There's no recovery. One car after another being pulled over the cliff.
In reply to Fucked? Like proper fucked? by RumpleShitzkin
Sears could just start making Craftsman tools in the US, probably would turn them around.
In reply to This whole Sears/KMart… by peopledontwanttruth
They have been struggling for years, surprised they held on this long
Layoff / Closing list: Dailyjobcuts.com
.
In reply to Sear, could just start… by JimmyJones
I'm making over $14k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://disq.us/url?url=http%3A%2F%2Fwww.Jobzon3.com%3Ab8eR_DQLwGRPVGtFv…
In reply to k by Shocker
Sears should talk to Obama.
After all, he "fundamentally changed America."
In reply to Sears is actually a good… by Currency Pinto
jim cramer when fellow skype got control of kmart and kmart bought sears -
going to the moon! because smart skype is in charge now
In reply to Sears should talk to Obama… by Never One Roach
Seared Holdings...
In reply to jim cramer when fellow skype… by cheka
I've talked with quite a few mechanically inclined people who have a lot of tools. They've all stopped buying craftsmen years ago. Said it's been junk for a long time. Long time.
Hard to turn a ship around when only meters away from the reef
In reply to Sear, could just start… by JimmyJones
My father-in-law passed not too long ago and I was going through his garage at the request of his wife. All the ancient Craftsman power tools (drills, jig saws, etc) still work. I have a angle grinder from the 60s that is still going too.
On the other hand, more recent craftsman tools are hard to discern from Chinese stuff.
Have you noticed that Harbor Freight has put a lot of effort recently into "up qualitying" some of their product lines?
In reply to I've talked with quite a few… by peopledontwanttruth
Will not happen as long as that douche Lambert is in charge. Sears was Amazon before there was an Amazon with their Sears Catalogue. If they had any foresight in the 1990s when the internet was first gaining momentum they could have put their entire catalogue on the internet, used their already in place vast distribution system along with some of their brick and mortar outlets and arguably they would not be in the shape they are in now. But selling inferior Chinese items, providing horrendous customer service, a complete douche for a CEO, and stores that have not been updated since the mid-70s created the perfect storm. If it were a lame horse it would have been put down 10 years ago.
In reply to Sear, could just start… by JimmyJones
When I was given the Amazon and (the other company, I forget) prospectuses I immediately pointed to Sears who had the entire market sewn up and could simply put their catalog online and erase these upstarts and their "new" ideas.
Well I was completely wrong.
1) Sears was never able to get the catalog "online" in a consumer friend way.
2) Amazon has been able to run a profitless model for years destroying companies that ran on the profit model.
In reply to Will not happen as long as… by Froman
Sears could just start making Craftsman tools in the US, probably would turn them around.
I doubt it. Harbor frieght stores are openning everwhere. No way Craftsman tools are going to complete especially when HF offer free tool replacement like snap-on does. I don't think Sears even owns Craftsman, and to be honest, Craftsman tools have never been quality tools. Some of the HF stuff is better quality than Craftsman.
In reply to Sear, could just start… by JimmyJones
Tell about the rabbits.
In reply to This whole Sears/KMart… by peopledontwanttruth
BANG!!!
In reply to Tell about the rabbits. by shizzledizzle
Just kill this dinosaur. Time to move on to a new paradigm.
In reply to Fucked? Like proper fucked? by RumpleShitzkin
And what would that be?
24 hour weed stores?
In reply to Just kill this dinosaur. … by The Ram
French toast, buttered toast, grilled cheese on toast, burnt toast.
Sears=Toast
One Hope: blow it up
Rebuild as an Amazon clone without the bricks & mortar department store model.
In reply to Fucked? Like proper fucked? by RumpleShitzkin
Bring back the Sears catalog.
People will need good toilet paper alternatives after the SHTF.
Can't wipe your ass with a crypto coin..............
In reply to Dear Eddie,… by shizzledizzle
Does crypto have shiny pages?
In reply to Bring back the Sears catalog… by SILVERGEDDON
I agree. I said that a few months ago.
We all agreed in that thread that it was a winner!!!
BRING BACK THOSE GREAT KIT HOMES.
Tools, appliances, lands end, toys, and ditch non-performing departments. Reduce sq footage footprint.
In reply to Bring back the Sears catalog… by SILVERGEDDON
There is a lot to be said for local warehousing.
Ask Amazon.
Except for the cost is seldom recovered in the consumer price.
You'll see even grocery stores doing inventory this time of year, to write down inventory/ware housing costs as apart of operating costs.
In reply to I agree. I said that a few… by Bigly
Won't work so long as Amazon can continue to operate without making profit undercutting conventional retail. Brick and Mortar has to have higher prices to cover employment and building costs. Since EVERYTHING comes from China there is no way a B&M store can compete. The only difference between Sears and Harbor Freight/Walmart is prettier boxes.
Sears, JCP and Monkey Wards used to be a notch or two higher than discount stores and people USED TO buy with quality in mind. Today the younger generations think only in terms of cheap. Quality is 'old school'. For them buying 5 coffee pots at $10 is better then 1 coffee pot at $35 because they think they are getting the latest in technology. The same reason they ALWAYS buy the latest IPhone or Tablet.
Another is previous generations maintained their equipment. Cars for example required decent tools. Today they lease the car then shove it off on some other unsuspecting soul when the lease is up. All the maintenance is done by someone else whether it's Autos or homes... No decent tools required.
And finally, the latest homeless clothing styles doesn't require you to try them on. Anything works. I used to buy quality tailored boot cut Levies. Can't be found in today's no style clothing racks. The NEW RELAXED homeless look with tears and already bleached out is all the rage.
It appears at this stage the only local stores left will sell groceries and even those will only sell stuff that cannot be shipped. Glad I am on my way out,,, I couldn't stand such a boring useless life spent on some social site texting back and forth.
In reply to I agree. I said that a few… by Bigly
This would allow a lot of people to get out with a gain. Not so much for those dumb enough to buy.
In reply to Dear Eddie,… by shizzledizzle
The truth is always stranger than fiction. This is essential exactly what they did in the 70's with the introduction of the "Searscard"!!!!!
Nothing new under the fucking sun and now that fraud is the status quo, if you cannot find greater fools, you just make them up and give them all the credit you want. The kids are all about augmented reality already!!!!
In reply to Dear Eddie,… by shizzledizzle
Yeah, and after that they got Cheryl Tiegs.
Pussy and easy money. That is how you move merchandise.
http://img.timeinc.net/time/magazine/archive/covers/1984/1101840820_400…
In reply to The truth is always stranger… by LawsofPhysics
Bingo, sex has always sold.
In reply to Yeah, and after that they… by Philo Beddoe
Sears was my first credit card when I was in college. Back then, you needed more than a pulse to start your credit history.....
In reply to The truth is always stranger… by LawsofPhysics
giving credit cards to college students...
Read you comment out loud and you will realize that the requirements weren't that different.
In reply to Sears was my first credit… by Bigly
I hear it in the comment. But I was a junior. I had been working since I was 15. So I could actually pay a bill.
I'm old. I worked through college. ;)
In reply to giving credit cards to… by LawsofPhysics
Since 1978 for me.
I think I kept the lights on for those guys some days.
In reply to Sears was my first credit… by Bigly
Too big to fail, credit is unlimited in this Country.. It's all about accounting tricks, debit and credit, Delete few zeros here and add few on the other side.. You got a loan... In reality money comes from Air, nobody loan anybody anything... "Modern Money Mechanics"..
In reply to Dear Eddie,… by shizzledizzle
Wow, these kike cunts have been stringing out Sear's demise for decades. Each transaction they conduct, like this lame attempt to 'restructure debt', results in these Sears kikes and the (((financial entities))) and their brokers, bankers, traders, et al working the deals to all profit off of the skim (commissions, fees, etc.) and continue to parasitize Sears. Rotten blood-sucking kike parasites.
In reply to Dear Eddie,… by shizzledizzle
blockchain that bitch!
Really? I thought no one went bankrupt (or to prison) in America anymore?
"Full Faith and Credit"
same as it ever was!!!!
EBTCoin is where it's at
https://coinmarketcap.com/currencies/ebtcoin/
gets you mad cheddar yo
Just shut this POS down already!
Your corporate plan, whatever the hell it is, is a complete Failure!
I think they're corporate plan is working. The plan was for all the C Level executives to raid whatever was left of the biggest retailer in the USA, then run from the stench of the dead corpse.
The little guy wasn't even though of nor anyone holding stocks or debt.
In reply to Just shut this POS down… by wmbz
I wouldn't exactly say that is unique to Sears management.
In reply to I think they're corporate… by peopledontwanttruth
Me either but they have had to know for years this was coming. I truly do believe this has been the behind the curtain plan all along.
In reply to Not quite sure that is… by Joe Davola
note to Sears...Just roll over and die, will ya?
As soon as the suits negotiate their golden parachute buyouts as they did when they shuttered Sears Canada, then it can die.
In reply to note to Sears...Just roll… by Snaffew
Sears Canada made similar noises before they went bankrupt. Pity.
Jack those rates baby!
Fcking bankruptcy asshoIes, put them in chains. I hate bankruptcy it protects asshoIes.
sears needs an eddie change. i propose swapping munster for lampert.
Gee, Grandpa, what are we gonna do if we can't get finance concessions?
Send me a catalog.
I take those 3rd world employees didn't turn out so well for Sears.
And a million Bogleheads invested in Vanguard REITS screamed in horror.
Pagination