Another merger

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KMart bought Sears. There was no "merger" to it. The guy that bought KMart out of bankruptcy has made a fortune on the deal. KMart was and still is real estate rich, Sears was and still is real estate rich. In KMart's case that real estate was not liquid enough to allow it to have an adequate cash flow so it was forced into bankruptcy due to a negitive short term liqiudity situation (all the while sitting on vast amounts of highly valuable heavily depreciated real estate). The new owner has just begun to cash in on that real estate but had still amassed enough cash to take over Sears. Expect to see a lot of Sears real estate on the market (remember all the little Sears stores and Sears Hardware stores not to mention the NTBs and other Sears owned non-Sears named stores, many of which have closed in the last few years - lots of real estate). Just because WE think of KMart and Sears as retail store operations, the folks who buy bankrupt companies or troubled companies don't always do so for the continuing operations. Sometimes the parts are worth far more than the whole.
Dave Hall
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<<KMart bought Sears. There was no "merger" to it. The guy that bought KMart out of bankruptcy has made a fortune on the deal. KMart was and still is real estate rich, Sears was and still is real estate rich. In KMart's case that real estate was not liquid enough to allow it to have an adequate cash flow so it was forced into bankruptcy due to a negitive short term liqiudity situation (all the while sitting on vast amounts of highly valuable heavily depreciated real estate). The new owner has just begun to cash in on that real estate but had still amassed enough cash to take over Sears. Expect to see a lot of Sears real estate on the market (remember all the little Sears stores and Sears Hardware stores not to mention the NTBs and other Sears owned non-Sears named stores, many of which have closed in the last few years - lots of real estate).>>
One of the things that helped K-Mart emerge from bankruptcy was that they raised over a half billion dollars selling a good sized chunk of their real estate (about 60 stores) to Sears.
Lee
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To e-mail, replace "bucketofspam" with "dleegordon"



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snipped-for-privacy@cs.com (David Hall) writes:

Is NTB still in business? All the stores here in Minnesota only lasted a year or two. The stores were vacant for a while and then Discount Tire opened at some or all of the locations.
Brian Elfert
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The one down the road from me is still operating. Of course it was just built three or four years ago.
Dave hall
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snipped-for-privacy@aol.comnotforme (Charlie Self) writes:

Actually, Kmart has had 3 consecutive profitable quarters, while sears has had losses 13 of the last 16 quarters. Seems kmart has successfully re-invented itself, perhaps sears can learn from that.
scott
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snipped-for-privacy@pacbell.net wrote:
If I have a choice I would certainly go to Sears. Kmart is pretty junky. The store layout is chaos. The products on sale are strictly low end. Sears has a mix of quality.
Dick

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On 17 Nov 2004 13:18:05 GMT, snipped-for-privacy@aol.comnotforme (Charlie Self) wrote:

Very strange strategy! A few years ago, we had some major gloats when Kmart closed 2 local stores and had closeout sales to try and pull the company out of bankruptcy...
Sears has been doing poorly for years and their attempt to compete with walmart and the borgs by acquiring Orchard Hardware only increased the bleeding... (the reason that I go to OHS a lot is because you never have to wait in line.. not a good sign for a retail outfit)
So, are they figuring that if you put 2 outdated losers together, they'll become a winner?????
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I think that was the same idea behind the Kerry/Edwards ticket.
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On Wed, 17 Nov 2004 20:33:29 GMT, "Frank Ketchum"

thanks, frank.. I hear that coffee is good for a keyboard once in a while..
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I heard this am - that the new 10 member board is 7 Kmart'ers and 3 Sears'ers. That caught me off-guard and made me wonder who's eating who (whom?)?
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On Wed, 17 Nov 2004 18:00:18 GMT, "patrick conroy"

Read the cover story of this week's (Nov 22 edition) Business Week. It was written before this sale, but it will give you a pretty good understanding of what it is about.
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Nah, the benefit is to the new store owner. The Sear/K Mart properties will be divided to 2/3 Wal Mart, 1/3 to Target. Give it three years.
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On 17 Nov 2004 13:18:05 GMT, snipped-for-privacy@aol.comnotforme (Charlie Self) wrote:

Pretty soon it'll all be one company.
Barry
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On Wed, 17 Nov 2004 20:47:04 GMT, Ba r r y

Nope. Walmart is far too savvy to gulp KSearz-Mart. They'll just watch it founder and die the slow, painful humiliating death it deserves.
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On Wed, 17 Nov 2004 21:18:46 -0800, Larry Jaques

Which leaves us with one company. Tar-Mart.
Barry
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On Thu, 18 Nov 2004 11:24:01 GMT, Ba r r y

As long as they don't start stocking bulk feathers we should be OK.
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On Thu, 18 Nov 2004 10:11:06 -0800, Larry Jaques

Brilliant.
Barry
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didja see the Frontline program this week? Titled something like, "Is Walmart Good for America?" It's a retail behemoth that dictates manufacturing and if you don't play by their rules, they're so large they can hurt a company's income to the point of financial hardship. Rubbermaid was one of the companies' declines illustrated by Walmart's hardball tactics.
Once Sam died, they really embraced the race to the bottom and abandoned the "Made in the USA" slogan.
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On Thu, 18 Nov 2004 13:41:20 -0800, Fly-by-Night CC

Sears did much the same thing in past decades, tho not to the extreme that Walmart has taken it.
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