Thread regarding Sears layoffs

Sears Holdings employees need an exit strategy - Bankruptcy is right around the corner

Until recently, I was a long-time Sears upper management employee based out of their Hoffman Estates headquarters. I recently took a similar position with another national retailer because Sears Holdings truly is like the Titanic. They are DOOMED.

I can tell you firsthand that Sears executives have had discussions with bankruptcy attorneys over the past few months. I'm not certain if those bankruptcy lawyers have been officially retained yet, but I will try and get that answer in the coming weeks. This is obviously confidential information. However, I think it is just horrible and unethical the way that Eddie Lampert and Sears executives have continued to lie and sugarcoat the true state of affairs to employees, vendors, creditors and investors of the company.

When I recently left the company, there was a true sense of chaos and panic at Hoffman Estates. The company was almost completely out of cash and was scrambling to raise more in just about any way possible. There were very few - if any - bidders for all of these "great assets" that Eddie Lampert is continually bragging about. Absent a miracle, I just cannot see how Sears Holdings will be able to fund inventory needs for the 2016 holiday season.

This entire situation is very sad and turning into a huge charade. Existing Sears Holdings employees really do need to plan an exit strategy, because the end could come at any moment. I really do feel sorry for the employees and their families.

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I honestly hope he did not get fired from his current company. I do not know if a company like SHC can sue a former employee since that employee did not disclose to his current company any propriety trade secrets/pricing, ect.

I do not know if he had to sign a non disclosure agreement. But telling former and current employees the current state of affairs at SHC. Should not violate the non disclosure agreement?

Unless SHC knows this exact employee and where he currently works, ect.

He should be fine? I do not know I hope he is ok? His feedback helped.

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I hope that OP didn't get in trouble with SHC! OP self identified as a former upper management employee. In many companies employees of that stature must sign confidentiality and nondisclosure agreements. Some of those agreements can be enforced even after one separates from the company. OP was very candid in expressing their insights and opinions about SHC; that may have caught the attention of the SHC legal department. While I appreciate all the information that OP shared with us, I just hope that OP didn't get into a bind by doing so!

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Yes love to know their thoughts on bankruptcy proceedings.

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I wondered what ever happened to OP? I hope he did not get in trouble with his new employer for posting on this board? About SHC Hell.

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They aren't making any money now. LMFAO

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OH, I just thought about this. Since the stores have no floor help.

Before the customer can shop have them fill out a release form at customer service stating if they need to use a ladder to get a product off the shelf they will not sure SHC for negligence? I wonder how well this would go over if this was implemented.

The stores would make no money if this was implemented.

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Does anyone know actually how many Kmart/Sears stores are left?

I am guessing for Kmart 800+/- stores left?

Sears I honestly have no idea? Does anyone know?

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OP,

what would be useful is where they are with the bankruptcy lawyers and realistically what they have left to sell?

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I'm still "digesting" this morning's earning report; however, here are my preliminary thoughts:

  1. As usual, the results were terrible. However, Lampert has bailed the company out yet again with a $300 million loan, and he'll probably borrow another $200 million later in the quarter.

  2. Lampert's loan, plus some other things that were done to raise more liquidity, should take a bankruptcy filing off the table until at least after the holidays.

  3. I cannot believe they did not announce a large number of new store closures - unless that announcement will be within the next day or so. Maybe they will wait until after the holiday season?

  4. SHLD is undoubtedly still a sinking ship. This company would have never survived this long if it were not for Lampert's financial games and he and his hedge fund buddies repeated "lifeline" loans.

  5. SHLD actually reported positive operating cash flow - very rare - during the quarter - but only because they dramatically reduced inventory levels during the quarter by $344 million. That explains the whole "no inventory in the stock rooms" initiative. Average store inventory has been reduced by around 5%. However, this will only be a one-time thing - unless SHLD wants to have empty stores with minimal amounts of inventory. That, of course, would lead to even fewer sales.

  6. Lampert has definitely cut operating expenses - I will give him credit for that. However, unfortunately it sounds as if there is very little - if anything - left to cut, and SHLD is still no where close to being profitable.

  7. The end is just a matter of time.

I will post some more thoughts later today after I have a chance to think about things more and speak with some of my former SHLD employees.

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I do not know how they will even get through Christmas with the crumbling IT infrastructure if the Troy data center crashes, stores are royally screwed since their no redundant data center .

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Like everyone said everything is up in the air, did SHC ever order seasonal like Christmas lights,trees,ect? Or not?

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Other companies have had $1b losses, but Sears probably sets the record for the longest downhill slide in corporate history. I was a manager at this company years ago, and my observations of the company go back almost 40 years now. There is some good information on this board. It's been a long time coming, but it looks like the end is near. Employees need to be prepared for the closure of all stores. Maybe the company will make it through the end of the year, but it can't last much longer.

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Has any company ever had 1 billion + losses in a year or is SHC the first?

I know everyone is looking forward to the release tomorrow. Then the store closure list will come out Friday.

I know everyone is looking forward to Friday, hopefully not being mean, your poor store will be put to sleep and redeveloped of those who close.

Closing a store I know it is hard, but redevelopment will be better than a dumpy store and suffering employees and customers.

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if they hit $530 million loss they will have successfully reached a billion in losses at the halfway point- the third quarter is generally the worst so more to come. No suprise if this quarters losses are much worse than the $470 million they did in the first quarter. Sears is the only company where its not called 2nd quarter earnings, its called 2nd quarter losses.

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Almost half a billion dollars in loss, has the losses this year gotten to the one billion plus mark yet?

How many store closures do you think they are looking at this time? 100-200+?

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Only a day to go until the results- loss expectation is around $470 million for the quarter - the usual transformation to a member centric integrated retailer blah blah will be trotted out but how much longer can this charade last. He's been talking about transformation for 8 years now, every quarter the numbers get worse.... Who is he trying to kid?

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You can log on to the "Vendor Portal" from home if you did not know.

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I am taking a simple poll, how many of you guys on here like having to play IT tech/Mr. Handyman to keep your stores from falling apart?

Tell us on here what kind of IT nightmares you have had this week? Along with having to play mr plumber,ect.

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Can the OP or others please describe what its like working at corporate. On Pebble it seems like all the corporate people have their head in the clouds and everything is just fine. Are they truly ignorant of the dilapidated state of most of the Kmarts? It's bizarre how they seem to prefer complicated change ups and new initiatives to improve the stores instead of basic retail 101 like having enough floor help, clean pleasant stores, good product, good prices, and fast checkout.

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Oh ok, sorry "BlueLighter" thank you for checking.

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I already checked the vendor portal and already answered your question. Scroll down.

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If someone can check the vendor portal and give me yes or no on those four stores it would help. Thanks guys.

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The vendor portal lists all store closures usually at the same time they are known to DMs. This is so vendors have time to cease shipments and remove product and vendor-owned fixtures prior to store closing sale. Vendors know they will not be paid by corporate for product in a closing store that they did not remove from the store.

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Does anyone agree with my comment?

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Your entire reply to my post made me laugh and you also hit the nail on the head.

The stores need to be put to sleep. The employees,customers are suffering the most due to safety and equipment issues.

On a positive note, store closures can be fun in a good way. You can ditch the crappy uniform wear what you want.

Maybe open the garden shop to sell everything in the 90days your open? Sell your summer stuff that is left out there since you can have an employee out there.

So in a good way store closures can be fun and enjoyable.

I wonder if the garden shop will open and they will run that register to clear that area out first? Since some plants and ect will be left?

I know when you have a store closing all registers are staffed fully, all 5-10,ect.

A lot of employees on the floor, every register in garden shop,electronics,jewelry will probably be opened and backed up.

That is how it was at my store,

So the comical thing is during a closing sale, Kmart stores are staffed like they used to be before all of the payroll cutting,

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Sad to say, but this crooked company and its scumbag so-called leadership has pushed everyone to the brink. When we wish people "good luck" in the closing announcement, it is for them to close and be put out of their misery. They will have almost 3 months of overtime and possibly severance and unemployment if needed. Then they can go find jobs with a more respectable company. The ones who think they are lucky to not be closing have NO idea what is coming their way. Looming staff cuts just in time for the busy shopping season, and worthless, clueless, fellating, butt kissing DMs and compliance goons who will insist that all online orders be perfect within 2 hours (driving to another store to get merchandise if necessary), layaway perfect (even though most of the ghetto trash that uses it never pays and it is RTS), and stupid complaining about crap like sign audits, endcaps being themed, etc. all while the checkouts are backed up because you have no help. And oh yeah, the registers will also be crashing/freezing and the RMUs and RES printers will be screwed up, too. Like I said I pray for everyone to be on the closing list. It is merely euthanasia at this point.

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Guys, I wish every one good luck. I know you guys are not looking forward to the store closing announcements.

FYI: the only reason I am asking about those four stores, especially the two Kmarts is I am looking for a job for the time being, and I have been though the liquidation process from start to finish.

So I know hours will be 40+ when the closing process starts and OT they do not care about.

I am sorry if this sounds mean but like someone else said I look at SHC for a paycheck since the company is going down the drain.

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I know that the earnings announcement is on 8/25, from what you guys have told me there is a conference call on 8/26 in regards to store closings and ect.

I only wanted to know since those 4 SHC stores are the only ones left in our area.

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Those are the four store that SHC has left in Charleston, SC.

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None of those 4 stores have been announced as closing yet. There is always an announcement on the corporate intranet the same day they tell the stores. That is not to say they won't be in the next closing announcement, whenever that comes.

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Scratch my list above are these stores closing, not had my Mountain Dew yet.

Kmart:3606

Kmart:4953

Sears:1325

Sears:2855

This is the correct list of the stores I want to know if they are closing. Thanks guys.

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Ok I am sorry I did not know. If anyone is on that call let me know if those four stores are closing I would really appreciate it a lot.

Thanks

JFB

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The call hasn't happened yet. It's Friday.

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I meant this Sears Number: 1325 is it closing?

Not store 1355

I got my numbers mixed up

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Now have the stores been told which ones are closing before the list is released to the public .

If anyone was on the store conference call and can tell me if these 4 stores are closing let me know ASAP. Thanks

Kmart 3606

Kmart: 4853

Sears: 1355

Sears 2855

I just want to find out before the list is released publicaly.

A Yes or No for each store number will be ok with me.

Thanks

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When they announced 50 sears optical closings they had a conference call schedules. What we didn't notice ahead of time was that some locations were calling into a different conference. The closing stores had one number and the rest of us had another. I couldn't even get into my call as it was full. Maybe Fridays sears holding call will be like that?

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Guys, thanks for putting up with me and all of my questions. I hope some of them gave you guys some good info.

Good luck to everyone.

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I am just guessing maybe that conference call is only for stores that are closing? I wonder this time around if SHC will pull out of whole states?

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I have heard the same thing. That at the end of the week after the numbers there should be some work. There is supposed to be a conference call at the end of the week.

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I think second quarter results come out Thursday 8/25 and store closures done Friday 8/26? Just from what I have read.

If someone has a clearer answer let us know.

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