[PLUG-TALK] Sears doomed

Aaron Burt aaron at bavariati.org
Sun Jun 3 09:20:05 PDT 2018


On 2018-06-02 15:48, Tomas K wrote:

<snip> 

> In the end, Sears will own nothing, just a lot of institutional debt - 60-100 billion of it. This has been analyzed over and over for the last two decades. If you'd go to Sears in the last decade - you'd find a well stocked retail business without the sales people - good luck finding someone to service you - the point of the business is not to sell stuff to shoppers, but to ESL.

<snip> 

I can't believe I didn't think of that angle.  It's like the scam in
"The Producers" and the same thing that killed Toys-R-Us.  Buy a
struggling, well-known business, take it private so there's no pesky
shareholders asking questions, craft a credible "turnaround plan" that
happens to involve lots of money flowing toward you, finance the
"turnaround plan" with other people's money, collect money, throw up
your hands and say "we tried" as you declare bankruptcy. 

What's amazing is that the cycle can be repeated with the same company
multiple times apparently. 

I like Eric Garland's writing on the subject.  Here, he talks about how
the same thing is being done to Guitar Center, on an ongoing basis: 
https://www.ericgarland.co/2016/01/21/7-things-learned-guitar-center/
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