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Business Failures
#41
SEARS

Sears, once the largest retailer in the world, is now reportedly facing bankruptcy.
The company, which hasn’t turned a profit since 2010 and is $134 million in debt, recently approached several banks to prepare for bankruptcy filing, CNBC reported Wednesday.

Shares plunged almost 20 percent on the news, and are set to open at a record low.




Sears CEO Eddie Lampert has been pumping funds from his own hedge fund, ESL Investments, into the company for years in an attempt to keep it afloat. Lampert owns a controlling share in Sears, with 31 percent of its stock; his hedge fund owns another 19 percent.

In August, ESL made an offer to buy out Sears' well-known appliance brand Kenmore and the company's home improvement business. Cash from those sales would infuse the company with around half a billion dollars, which could stave off bankruptcy for a few more months. Sears sold off another legacy brand, Craftsman, in 2017.

Once a staple of Main Street and malls nationwide, the 125-year-old company has shut down over 100 stores in the last year, with 46 stores set to shutter next month alone. Sears and Kmart, part of Sears Holdings, operated around 1,000 stores in 2017.

Shares have fallen by more than 85 percent in the last year as e-commerce has taken over the brick-and-mortar retail space. Despite pairing up with Amazon in 2017 to sell appliances online, analysts say Sears has not kept pace with change nor made investments in the digital space to the extent that Walmart and Target have done.

https://www.nbcnews.com/business/busines...rt-n918446
The ideal subject of totalitarian rule is not the convinced Nazi or the dedicated Communist  but instead the people for whom the distinction between fact and fiction, true and false, no longer exists -- Hannah Arendt.


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#42
(10-10-2018, 10:16 PM)pbrower2a Wrote: SEARS

Sears, once the largest retailer in the world, is now reportedly facing bankruptcy...

Sears was an extremely arrogant retailer in its heyday, which lead to their first demise.  The vulture capitalist who bought the company on the cheap was even less enlightened.  Stanley Tools got the Craftsman brand and some other company got the Kenmore brand, so the best parts of the company survive.
Intelligence is not knowledge and knowledge is not wisdom, but they all play well together.
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#43
(10-11-2018, 09:49 AM)David Horn Wrote:
(10-10-2018, 10:16 PM)pbrower2a Wrote: SEARS

Sears, once the largest retailer in the world, is now reportedly facing bankruptcy...

Sears was an extremely arrogant retailer in its heyday, which lead to their first demise.  The vulture capitalist who bought the company on the cheap was even less enlightened.  Stanley Tools got the Craftsman brand and some other company got the Kenmore brand, so the best parts of the company survive.

I have a thread on the life-cycle of businesses. About five years ago. about anyone could see that Sears was then Craftsman, Kenmore, Land's End, and junk. Sears was living on a reputation, which is simply not enough.

This is a bad time for dry-goods retailing. Maybe people are no longer excited about buying stuff in the post-industrial era. Maybe they want experiences instead of stuff.

At one time Sears owned WLS (call letters allegedly meant "World's Largest Store") Radio when its wide-ranging zone of broadcasting got rural America into its sales market.
The ideal subject of totalitarian rule is not the convinced Nazi or the dedicated Communist  but instead the people for whom the distinction between fact and fiction, true and false, no longer exists -- Hannah Arendt.


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#44
USA Gymnastics, which channeled many excellent female gymnasts into Olympic competition but could not keep Larry Nassar's filthy paws off the gymnasts, has filed for Chapter 11 bankruptcy.


Quote:(AP) USA Gymnastics is turning to bankruptcy in an attempt to ensure its survival.

The embattled organization filed a Chapter 11 bankruptcy petition on Wednesday in an effort to reach settlements in the dozens of sex-abuse lawsuits it faces and to avoid its potential demise at the hands of the U.S. Olympic Committee.

USA Gymnastics filed the petition in Indianapolis, where it is based. It faces 100 lawsuits representing over 350 athletes in various courts across the country who blame the group for failing to supervise Larry Nassar, a team doctor accused of molesting them. Nassar, 55, worked at USA Gymnastics and Michigan State University for decades. He is serving effective life sentences for child porn possession and molesting young women and girls under the guise of medical treatment.
.....................

(Kathryn) Carson, who replaced Karen Golz as chairwoman last week, said she accepted the position because she believes in the direction of USA Gymnastics, which she said doesn't need money but rather time.

"We think we're changing the dynamic and we certainly believe that we will try to remain the NGB," Carson said. "To be clear, it is our lawyers' firm belief that the bankruptcy will automatically stay (decertification) ... and we will work with the USOC to regain credibility."

Nicholas Georgakopoulos, a bankruptcy expert and law professor at the Indiana University's Indianapolis campus, said USA Gymnastics is "hoping for a miracle" with its legal maneuvering.

"The USOC says you violated this relationship, here are the consequences and USA Gymnastics is saying it filed for bankruptcy, there are no consequences," Georgakopoulos said. "This is like a gambling addict who goes to the casino and gambles every day and one day the casino says you can't come anymore, you've lost too much, and addict says, I filed for bankruptcy, you can't stop me from coming to the casino."

If the USOC wants to go forward with decertification, it must now go to court.


https://www.msn.com/en-us/news/other/usa...smsnnews11
The ideal subject of totalitarian rule is not the convinced Nazi or the dedicated Communist  but instead the people for whom the distinction between fact and fiction, true and false, no longer exists -- Hannah Arendt.


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#45
NEW YORK (AP) — Payless ShoeSource is shuttering all of its 2,100 remaining stores in the U.S. and Puerto Rico, joining a list of iconic names like Toys R Us and Bon-Ton that have closed down in the last year.

The Topeka, Kansas-based chain said Friday it will hold liquidation sales starting Sunday and wind down its e-commerce operations. All of the stores will remain open until at least the end of March and the majority will remain open until May.

The debt-burdened chain filed for Chapter 11 bankruptcy protection in April 2017, closing hundreds of stores as part of its reorganization.

At the time, it had over 4,400 stores in more than 30 countries. It remerged from restructuring four months later with about 3,500 stores and eliminated more than $435 million in debt.

The company said in an email that the liquidation doesn’t affect its franchise operations or its Latin American stores, which remain open for business as usual. It lists 18,000 employees worldwide.

Shoppers are increasingly shifting their buying online or heading to discount stores like T.J. Maxx to grab deals on name-brand shoes. That shift has hurt traditional retailers, even low-price outlets like Payless. Heavy debt loads have also handcuffed retailers, leaving them less flexible to invest in their businesses.

But bankruptcies and store closures will continue through 2019 so there’s “no light at the end of the tunnel,” according to a report by Coresight Research.

Before this announcement, there have been 2,187 U.S. store closing announcements this year, with Gymboree and Ascena Retail, the parent of Lane Bryant and other brands, accounting for more than half the total, according to the research firm. This year’s total is up 23 percent from the 1,776 announcements a year ago. Year-to-date, retailers have announced 1,411 store openings, offsetting 65 percent of store closures, it said.

Payless was founded in 1956 by two cousins, Louis and Shaol Lee Pozez, to offer self-service stores selling affordable footwear.

https://www.huffpost.com/entry/payless-s...57c36c0fd5
The ideal subject of totalitarian rule is not the convinced Nazi or the dedicated Communist  but instead the people for whom the distinction between fact and fiction, true and false, no longer exists -- Hannah Arendt.


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#46
Here's one business model that could fail: the restaurant buffet. It's not for the finances (although those places operate on a razor-thin margin to price-sensitive people, which is a poor sort of business to be in when the economy takes a nosedive or tastes change.

https://www.vox.com/the-goods/2019/4/3/1...den-corral

The problem is that food must either be very cold or outright hot to not be vulnerable to bacteria that can make people terribly sick. The food can be made cheaply in batches and be self-service, so it does not need the wait staff that a sit-down restaurant has, People may be serving themselves some E. Coli with their fried rice, french fries, or lettuce.


Quote:The existence of “fried rice syndrome,” is, I think, the factoid that eviscerated my innate human curiosity, probably forever. Brought to my attention by Laurel Dunn, a microbiologist and assistant professor of food science at the University of Georgia, “fried rice syndrome” is actually just a colloquial term for vomiting and diarrhea brought on by consuming Bacillus cereus, a “Gram-positive, rod-shaped, aerobic, facultatively anaerobic, motile, beta-hemolytic bacterium,” which can survive, as a spore, being boiled and fried, then come out the other side ready to germinate and grow when left at room temperature.

Food safety experts consider the range between 41 degrees and 135 degrees Fahrenheit the “danger zone.” Keep food cold or keep it hot; there is no in between — or there is, but that’s where foodborne pathogens grow best, replicating, getting ready to hurt you, Dunn explains.

"Lukewarm food is where foodborne pathogens grow best, replicating, getting ready to hurt you"

B. cereus is one of the most common causes of food poisoning, and its presence in fried rice was first studied in 1974. Yet “fried rice syndrome” had its first big spike in Google search interest in 2007. I cannot deduce why! But then it had another in 2015, when the USDA issued a warning about preventing foodborne illnesses, specifically fried rice-borne illnesses. And then another last year, when a 62-year-old Texas woman sued her local Chinese buffet for $1 million in damages after she contracted “fried rice syndrome” that put her in the ICU for eight days.  

(My apology if you have just gorged yourself at such a place).
The ideal subject of totalitarian rule is not the convinced Nazi or the dedicated Communist  but instead the people for whom the distinction between fact and fiction, true and false, no longer exists -- Hannah Arendt.


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#47
Third-Biggest U.S. Coal Company Files for Bankruptcy
Gillette-based Cloud Peak Energy filed for Chapter 11 reorganization

By Associated Press // May 10, 2019

GILLETTE, Wyo. – The nation’s third-largest coal company by production volume filed for bankruptcy Friday as utility companies increasingly turn to gas-fired generation and renewable energy for electricity.

Gillette-based Cloud Peak Energy filed for Chapter 11 reorganization in U.S. Bankruptcy Court in Delaware. The move was widely expected since at least March, when the company received the first of several extensions to make a $1.8 million loan payment.

The latest extension expired Friday.

Cloud Peak owns and operates three mines in the Powder River Basin: the Antelope and Cordero Rojo mines in Wyoming and the Spring Creek Mine in Montana.

The mines shipped 50 million tons of coal in 2018. Cloud Peak officials say the mines will remain in operation during the bankruptcy process.

https://flatheadbeacon.com/2019/05/10/th...ankruptcy/
The ideal subject of totalitarian rule is not the convinced Nazi or the dedicated Communist  but instead the people for whom the distinction between fact and fiction, true and false, no longer exists -- Hannah Arendt.


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