by Bob Walsh
There is open speculation in the retail sector today (Friday as I write this) that Sears could be dead and getting ripe by close of business tomorrow. The chairman, Eddie Lmapert, tried to put together a $4.6 billion to buy the company thru a hedge fund but did not manage to pull it off.
I would personally hate to see the 132 year old American institution go away, but nothing lasts forever. Such is life.
EDITOR'S NOTE: Sears Chairman Eddie Lampert and his ESL Investments submitted a last-minute takeover bid of $4.4B for the ailing company but there is no certainty that the creditors will accept the offer.
Why would any sane investors try to bail out a company on life support? Putting $4.4B into Sears is like putting a band aid on a flesh-eating bacteria wound.
1 comment:
It would seems that during the past year Sears sold off a lot of it's real estate to a real estate holding company controlled by their chairman. Sounds more than a tad like suspicious self-dealing. Perhaps he wants to take over because he believes there are enough assets left to make gutting the company profitable. Or perhaps he really thinks he can make a go of running it. Perhaps he also believes in the Easter Bunny. I am betting on option number 1, but I am notoriously suspicious of such coincidences.
Post a Comment