Another merger

Page 3 of 4  
"GregP" wrote in message

Corporate America and never been all that warm and fuzzy. Either compete ... or get you a government contract.
--
www.e-woodshop.net
Last update: 11/06/04
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Swingman notes:

True. They project the image for the customers, not the vendors.
Charlie Self "Health nuts are going to feel stupid someday, lying in hospitals dying of nothing." Redd Foxx
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On 17 Nov 2004 13:18:05 GMT, snipped-for-privacy@aol.comnotforme (Charlie Self) wrote:

What really sucks is looking at Kmart's stock price. It started around $15 when they emerged from bankruptcy -- I looked at it and thought, "yeah, right, that'll last" They marched through $25, then up to $50, sometimes jumping $2 to $3 or more a day. They closed at $109 today, up $7.78 for the day.
Congratulations to those who were adventurous enough to jump in.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Charlie ...
<<Supposed to come in as #3 behind Walmart and Target.>>
This will make them bigger than Target. The number 2 retailer is Home Depot.
Lee
--
To e-mail, replace "bucketofspam" with "dleegordon"



Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Not according to every news report I've heard.
todd
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
The "Depot" family is pretty big, but it's an orange and Target's an apple.

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Lee Gordon notes:

What the hell. I quoted the story. The writer may have meant general lines retailer. Who knows?
Charlie Self "Health nuts are going to feel stupid someday, lying in hospitals dying of nothing." Redd Foxx
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

How come nobody is wondering how soon the layoffs will hit and how many will be axed? Every time a bank pulls off one of these deals they always announce the expected "efficiency" savings by reductions in force. I suppose the efficiencies will come when they close one store or the other when both are within 10 miles of each other. That should give them great coverage compared to the competition ;-}
We have a KMart within three miles and a Sears equally close. Both stores are truly well run, with high traffic and generally good quality merchandise. Should be interesting to watch the drama unfold, although I would hate to be a career employee watching from either camp ...
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
anoldsalt asks:

You know it's going to happen, in the offices if nowhere else, but speculation is probably fruitless. I know a bunch of people who work Sears' main office, and a bunch of people in other companies who depend heavily on Sears in one way or another. I don't know how things will turn out for any of them. I hope well, but don't know.

Presumably that's not going to happen, but that's today's announcement. What tomorrow's announcement will be won't be known for a few hours. And so on down the road.
Charlie Self "Health nuts are going to feel stupid someday, lying in hospitals dying of nothing." Redd Foxx
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
I'm really surprised anyone in this forum gives a rats ass if KMart & Sears merged or not given most people constant riddicule of Sears tools and the probability they won't shop for tools at KMart for tools either. Being that neither chain carries the tools that are so commonly mentioned here I'm surprised the curmudgeons care. John
Charlie Self wrote:

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

I'd have to agree. I wouldn't go into a K-mart if they paid me to shop there, and while I don't hate Sears, I don't have any interest in them either. Everytime I've attempted to get a tool I needed at Sears, it's been something they don't carry, so they quickly became irrelevant to me.

Aut inveniam viam aut faciam
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
snipped-for-privacy@aol.comnotforme (Charlie Self) wrote in

No benefit to Sears at all. They are not really merging, Sears is being bought by KMart. KMart wants Sears because the real estate Sears owns is worth a bunch of money (plus they get a few brands they can maybe make a little off, but that's lagniappe).
Note that the fact KMart can buy Sears only 3 years after bankruptcy says there's something really wrong with the bankruptcy laws.
John
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Thu, 18 Nov 2004 20:53:20 +0000 (UTC), John McCoy

I'm not sure that follows. K-Mart was a classic case of a company rich in illiquid assets (real estate, in this case) that had dug itself into a cash hole with a combination of poor business practices and inability to adapt to changing market conditions. It was technically bankrupt since it couldn't pay its bills, but it had a lot of stuff it could eventually convert to cash.
So in that sense it was an ideal candidate for a Chapter 11 reorganization. (Which really isn't bankruptcy as we usually think of it.) The fact that they ended up with a wad of cash just a couple of years later indicates they were successful in converting some of those illiquid assets into cash.
What this says about the long-term survival of K-Mart or Sears, the wisdom of the merger, or the ethics and tactics of the guy who put the thing together are completely different matters.
--RC
Sleep? Isn't that a totally inadequate substitute for caffine?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
BINGO! Of course, a lot of those assets are probably leveraged a bit now.
wrote:> >Note that the fact KMart can buy Sears only 3 years after bankruptcy

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
snipped-for-privacy@TAKEOUTmindspring.com wrote in wrote:>>No benefit to Sears at all. They are not really merging, Sears is

Yeah - Sears is in much the same position, except it's not in such a bad state cash-flow-wise.

Yes, and it would seem that success is encouraging the mgmt to try much the same process with Sears. Again you have a company "rich in illiquid assets", so the same process of converting them to cash should be just as successful.

I'm not saying anything about the ethics of the guys running KMart. They have played the game according to the rules, and played it well. The issue I see is that the rules allowed them to abrogate a lot of debt and committments (e.g. the suppliers who had to eat inventory when KMart was able to break purchasing contracts); _then_ convert the illiquid assets to cash. Under a traditional bankruptcy the illiquid assets would have been used to satisfy the existing committments. I think the rules should be adjusted, not with the intent of putting a company like KMart out of business, but to at least ensure obligations can't be written off while large value assets are sheltered.
John
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

The primary reason for K-mart buying Sears is that the combined company would have a large enough loss-carry-forward that it can be profitable for *years* before paying any taxes. K-mart is not currently profitable, so there is no advantage in the past losses. Sears, OTOH, is marginally profitable, and the use of the K-mart losses on the books goes directly to the bottom line.
The fact that more than half of each company is owned by the same group of investors made the merger pretty easy.
-- Howard My opinionated book reviews on sales topics http://book-reviews.hostpci.com
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Fri, 19 Nov 2004 17:09:37 +0000 (UTC), John McCoy

The rule in a case like this is that everyone gets to negotiate and at least the majority of each class of creditors has to approve the reorg before the court accepts it. In other words those suppliers had a seat at the table and a chance to be heard, so it's not as unfair as it seems.
If they'd gone through an actual bankruptcy rather than a reorg the creditors would have had a shot at getting part of those real estate assets as they were sold. The problem with that is that it either takes several years to liquidate everything or you end up selling it off as fire sale prices.
In a reorg creditors such as suppliers are typically compensated in part in equity (stock, basically), which means they get something faster and have a shot at more if the reorganized company prospers.
What it comes down to is a judgement call for the creditors and a whole lot of heavy duty negotiating among the various interested parties and their attorneys. Those negotiations are typically pretty brutal.
--RC
Sleep? Isn't that a totally inadequate substitute for caffine?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
snipped-for-privacy@TAKEOUTmindspring.com wrote in

How come everything I have seen indicates that Sears was the one buying Kmart?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

It's either way. The same investor group owns more than half of both companies. As mentioned elsewhere, it is for tax purposes more than anything else.
-- Howard My opinionated book reviews on sales topics http://book-reviews.hostpci.com
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
It's about real-estate. Sears has bought 66 existing K-mart and Wal-Mart stores/buildings over the past 12 months as they pursue their "off mall" strategy. For a company flush with cash such as Sears, 11 billion was probably a bargain compared to buying up more individual stores. This merger gives the new company (Sears Holding Corp.) a total of 3500 locations. I can't speak for all of the off-mall stores, but the one locally being converted (a former K-Mart) they will even be carrying groceries. We've heard that stores will be carrying lumber as well (yes, I work part time at Sears). Sounds to me like they're trying to go after both Home-Depot and Wal-Mart. I figure if their lumber and groceries are like that of Home Depot and Wal-Mart I'll continue buying my groceries at grocery stores and lumber at lumber yards.
Kevin Daly http://hometown.aol.com/kdaly10475/page1.html
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Site Timeline

Related Threads

    HomeOwnersHub.com is a website for homeowners and building and maintenance pros. It is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.