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TheToolman

It’s Over for Sears Canada

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Sears Canada hired the same leading bankruptcy advisory firm on June 12 that had represented Target Canada in its insolvency proceedings. Ten days later, it filed for bankruptcy protection to restructure its capital and its operations, shutter dozens of it 225 stores and lay off nearly 3,000 employees, but planned to continue operating. Today it said that the restructuring efforts failed, and that it would seek court approval to liquidate, shutting all its remaining stores and laying off its remaining 12,000 employees.

Retailers are notoriously difficult to restructure. Once they’re this deep in trouble, after years of losses, they own few assets and are burdened with debts, as everything has been sold or pledged to creditors. Their suppliers, who’ve been burned too many times, are getting skittish. Lenders are getting desperate. And acquirers can be impossible to find. Most retailer bankruptcies start out as restructurings but end as liquidations.

To stay alive while losing money for years, Sears Canada has sold off most of its real estate holdings, and the most valuable assets are already gone. What’s left are C$1.1 billion ($880 million) in liabilities.

“The company deeply regrets this pending outcome and the resulting loss of jobs and store closures,” the company said in the statement.

Pending court approval to begin the liquidation process, Sears Canada said that it would kick off liquidation sales at its stores as soon as October 19 and continue through the holiday selling period.

https://wolfstreet.com/2017/10/10/sears-canada-to-liquidate-close-all-stores-lay-off-12000/

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Already happening here.. rumors have it that the executives are hanging their heads, pretending to suffer right alongside their 'loyal' employees, sharing the 'hardship' & the pain associated with underfunded pensions and mismanaged portfolio assets.. blah blah blah.

When in fact they see the future & effectiveness of drop-shipping.. absorbing what's left of the pension fund and re-branding their online services to emerge as the "New Canadian Made' E-Bay. Seriously, there's no regret or 'remorse'.

Just like every other retail-outlet or major  manufacturer who has been federally encouraged to dump their proverbial 'debt-load' into subsidies & handouts.. every job 'cut' is a million dollars made.

Welcome to the 'Apocalypse' & the inevitable collapse of the 'middle class' paradigm. 

 

 

Strange daze indeed.. :blink:

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2 minutes ago, GT500 said:

It’s over for retail period..

Sadly..... I liked buying from local retail you could trust. Now they don't exist :(

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Just now, Ukshep said:

Sadly..... I liked buying from local retail you could trust. Now they don't exist :(

I try the same 

use mom and pop when able 

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1 minute ago, GT500 said:

The economy is radically changing 

many will be in the cold 

We are going towards a more service oriented industry. It is interesting that the electric load is not changing much. We are seeing retail leave in my area, but restaurants/auto servive/hair and nails/bars/etc are booming and making up for retail leaving. People want to be entertained and have their car/house work done for them.

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1 hour ago, GT500 said:

The economy is radically changing 

many will be in the cold 

:tissuespls: He's right you know!

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One of the biggest issues here is that while industry's come and go, buggy whip manufacturers for instance, for the first time ever the beneficiary of the change is not an entire new industry like IT in general, but a single company - Amazon. 

Where the hell is the anti-trust on this? Don't tell me, it disappeared due to political bribes donations. 

Don't feel bad though, I see the same thing even in my country, which always scores at or near the top in the anti-corruption indices.

Go figure. 

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What most people don't realize about Amazon, is that if you took their AWS (their cloud business) away, Amazon hasn't made a penny of profit in it's 20 years selling stuff online....   How can Walmart, Sears, Target and others compete when they are not selling and shipping at a loss?

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Just now, TheToolman said:

What most people don't realize about Amazon, is that if you took their AWS (their cloud business) away, Amazon hasn't made a penny of profit in it's 20 years selling stuff online....

Really? That's very interesting. I might do some research into Bezos in that case, I know he's spooky because of the $600m AWS contract from the CIA which he used to buy WaPo and proceed vigorously to push the party line even harder than Graham did, but a logistics company has significant upfront costs which require deep pockets and lenders won't lend unless the business case stacks up, unless the lenders are govt fronts, which is the only time it ever happens. Like with Google. I imagine In-Q-Tel's records have some interesting data in them. Shame Anonymous and Wikileaks can't get ahold of those.  

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