This does not sound good for Kmart.
This does not sound good for Kmart.
OH great, my prediction was correct. SHC tried the disgruntled vendor trick and claims they pay their vendors on time.
Why am I not surprised?
That's what happens when you don't pay your bills. Eventually people get smart enough to quit sending stuff to you.
They've " blocked and feathered " our local K Mart with wider aisles and lower shelving to try to hide the fact that they are much lower on inventory.
Having worked decades in retail, you kind of know the tricks.
Cant wait to see what happens with the spaces when the Halloween items that are unsold go to clearance. There's a ton of it and only 2 days left to sell it.
Maybe they can convert it into a bowling alley.
I recently transferred to another high-volume Kmart. I can attest that we are loaded with seasonal (Halloween and Christmas) merchandise. Our most recent shipment included 10 pallets of toys in advance of Black Friday. However, for run-of-the-mill general product - sale items especially - we're out of many and some counters are nearly empty. Despite conducting inventory in July, our on-hands are grossly under-inflated. Lastly, and unrelated, while not being a profitable location, our three ASMs will remain salaried on January 1, 2017.
Credit manager here. The company I work for ended our relationship with SHLD a few years ago. It's just like 2gzt said: I didn't want to go to my manager and say that we had a bunch of credit exposure on a risky customer. Thank goodness the salesperson I worked with on the account was well aware of SHLD's financial situation and was more than happy to find a new home for the products in question.
As a credit manager, hearing even rumors of bankruptcy make me nervous and twitchy. We have to worry about preference claims as well as the exposure itself. Defending against one of those isn't fun, so it's a balancing act between "do we keep selling?" and "when would we be in the clear for preference?"
Inventory has been substantially reduced however the company is making it sound like this is a good thing. The idea that we won't buy the thing we don't sell don't hold weight when stores simply aren't getting key inventory
Don't these vendors read boards like this? Why would they ship anything when they can read how this company is going down the drain fast. Also, we haven't got much Christmas merchandise yet and it is almost November. Just a few trees, some ornaments and stockings. Last year we had pallets of stuff. The stuff we do have looks like it is left over from last year.
We need to start a go fund me account for Sears. Dont let Sears bankruptcy stop your kids from getting toys at Kmart-Sears please donate now. If Obama would give us like a Billon dollar Stimulus loan, we could avoid closing for another 90 days. Come on Barack help us out, go fund me.
There's nothing more insecure than a credit manager. Jakks isn't that big of a product deal, but the precedent here is key. NO credit manager wants to be grilled on why he allowed merchandise to ship to a distressed retailer when others had halted shipment. Usually the sales guys win this argument saying "we have GOT to book this revenue or we don't make our bonus" and who doesn't want to make bonus. But once the tide starts going out, it just feeds on itself...
Bankruptcy is now a waiting game. If the banks and the vendors won't issue credit or ship then the game is up before Christmas. If SHC can pay up front for Christmas merchandise then it will be after the first of the year. If banks won't lend to vendors to manufacture and ship products to a certain retailer then the vendor has no other option than to stop shipments unless the retail establishment can pay up front.
I would say that once one vendor starts to not ship then the rest will follow. Only hope is if Eddie loans the company money or pays for Christmas shipments. It is over.
After discussing with large banks did Jakks come to this decision. This isn't one vendor hastily stopping shipments. The banks are recommending it!! The end is very near.
We are not going bankrupt but we will be using the proceeds from the asset sales of KCD to plug the pension hole and to accelerate store closings.
They will start using smaller vendors and purchasing grey goods next.
I suspect personally, that maybe?
Bankruptcy will be filed after several vendors as in 15-20+ major vendors stop shipping?
I give the bankruptcy filing before thanksgiving?
When do you think the bankruptcy will be filed??
I think SHC will try to spin this issue and claim it is a "Disgruntled Vendor" and that SHC always pays on time for its products.
Along with the rest of the corporate BS.
Many to follow
What is the status of the Spring inventory ? It should be on the water now.
They all fall in line quick. This is how the end at Circuit City worked. The suppliers say when it is over. Sears does not have the cash to pay up front to the majority of suppliers.
And so it begins. Exactly how CC closed their doors. Saw another vendor accepting only COD payments from SHC. I give us 3 months. The end is very near!! Thank god!
Understandable, from their business perspective SHC is running out of money. I wondering if other SHC suppliers will quit shipping to SHC DC's? With Christmas being less than 2mts away will SHC have any toys or electronics to sell? That is the big question.
I am wondering after this supplier suspends sales to SHC. How many suppliers will follow suit in stopping shipments to SHC DC's?