It’s Official: Sears Canada Announces Bankruptcy; Fires 2,900

Sears Canada Announces Bankruptcy; Fires 2,900:

It’s official – the US ‘retail apocalypse’ has moved north as Sears Canada (and some of its subsidiaries) have applied to Ontario Superior Court of Justice for protection under the companies’ Creditors Arrangement Act (CCAA), in order to continue to restructure its business.

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Sears Revenues Plunge, to Hit Zero in 3 Years, Shares Jump

Sears Revenues Plunge, to Hit Zero in 3 Years, Shares Jump:

The ingenious strategy of cost-cutting and store-closing your way out of trouble: Pretty soon, it leads to zero.

Sears reported first quarter earnings today. “Earnings” has been a bad joke with Sears, which has lost money every one of the past six years, $10 billion in total.

H/t reader squodgy:

“This article, whilst highlighting the struggle affecting all high street retailers, takes the mickey out of what is really the only route available for Sears….cost cutting and store closing.
Unfortunately only a few of us foresaw economic unsustainability on the horizon. The logic was laughed at, now the tsunami is here.”

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Sear’s Bankruptcy, Who Gets the Real Estate, and How the Pension Fund Got Hung Out to Dry (at Taxpayer Expense) Invade Mnuchin’s Senate Confirmation Hearing

Sear’s Bankruptcy, Who Gets the Real Estate, and How the Pension Fund Got Hung Out to Dry (at Taxpayer Expense) Invade Mnuchin’s Senate Confirmation Hearing:

“You were a Director at Sears for 12 years where you had oversight over the administration and investment in the pension fund.”

That Sears Holdings will file for bankruptcy appeared to be taken for granted in the confirmation hearings before the US Senate on Thursday. And when it does file, it’s going to get very complicated for Steven Mnuchin, the Trump administration’s appointment for Treasury Secretary. But the most fascinating part, for us as a non-political site, is the dissection of the whole Sears deal.

Senator Bob Menendez (D-NJ), as he proceeds with his questioning, lays out how Sears Holding’s CEO “Eddie” Lampert, his hedge fund ESL, and some other entities have worked hard to get their hands on the real estate when Sears Holdings goes through bankruptcy, while the pension fund left behind is a sinkhole that taxpayers might be shanghaied into filling.

Read moreSear’s Bankruptcy, Who Gets the Real Estate, and How the Pension Fund Got Hung Out to Dry (at Taxpayer Expense) Invade Mnuchin’s Senate Confirmation Hearing

Sears To Accelerate Closings, Shutter 235 Stores

Sears
Banners hang from Sears’ flagship store in the Loop on January 22, 2014 in Chicago, Illinois.

Sears to accelerate closings, shutter 235 stores (CNBC, Dec 4, 2014):

Sears shares fell Thursday, after the struggling department store announced an adjusted net loss of $296 million—in line with the updated guidance it gave in November.

The retailer also said it’s accelerating the number of stores it plans to close this year, boosting its list from the 130 underperforming stores it announced in its second-quarter earnings release, to a total of 235 stores.

Read moreSears To Accelerate Closings, Shutter 235 Stores

THE RETAIL DEATH RATTLE

THE RETAIL DEATH RATTLE (The Burning Platform, Jan 19, 2014):

“I was part of that strange race of people aptly described as spending their lives doing things they detest, to make money they don’t want, to buy things they don’t need, to impress people they don’t like.”Emile Gauvreau

art_till

If ever a chart provided unequivocal proof the economic recovery storyline is a fraud, the one below is the smoking gun. November and December retail sales account for 20% to 40% of annual retail sales for most retailers. The number of visits to retail stores has plummeted by 50% since 2010. Please note this was during a supposed economic recovery. Also note consumer spending accounts for 70% of GDP. Also note credit card debt outstanding is 7% lower than its level in 2010 and 16% below its peak in 2008. Retailers like J.C. Penney, Best Buy, Sears, Radio Shack and Barnes & Noble continue to report appalling sales and profit results, along with listings of store closings. Even the heavyweights like Wal-Mart and Target continue to report negative comp store sales. How can the government and mainstream media be reporting an economic recovery when the industry that accounts for 70% of GDP is in free fall? The answer is that 99% of America has not had an economic recovery. Only Bernanke’s 1% owner class have benefited from his QE/ZIRP induced stock market levitation.

Read moreTHE RETAIL DEATH RATTLE