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Moody's: Sears' and Kmart's shutdown is imminent
This is sheer, sad stupidity. Talk about walking away from your core business! Sears (and its rival, the late Monkey Ward) used to be what Amazon is, in pre-technology days. You got their "web site" in the mail every month, and they'd ship you anything from a pair of shoes to a house (you had to put it together yourself). K Mart is the offspring of the Kresge 5 & 10 stores, and were what WalMart perfected. As mail order tanked, K Mart bought Sears, with the holding company in the Sears name. Neither company saw the potential of the internet and neither has a significant internet presence. I guess the Triceratops was a good idea at one time, too.
[BUSINESSINSIDER] Moody's analysts say Sears and Kmart don't have enough money -- or access to money -- to stay in business. In a note published Wednesday, the analysts downgraded Sears' liquidity rating, saying the company is bleeding cash and will have to continue to rely on outside funding or the sale of assets, such as real estate, to sustain operations.
The Langston by Sears & Roebuck, circa 1920. Shipped into town by train, pieces numbered with blueprint and assembly instructions. I don't believe the Langston had an indoor privy. Some of the larger models did.
"We recognize the risks associated with relying on these sources and continued shareholder support to finance its negative operating cash flow which is estimated by Moody's to be approximately $1.5 billion this year," the analysts wrote.

Kmart in particular is at risk of shutting down, according to Moody's.

"The ratings... reflect our view on the uncertainty of the viability of the Kmart franchise in particular given its meaningful market share erosion," the analysts wrote.

Sears said in August that its cash and equivalents have fallen to $276 million from $1.8 billion one year ago. As a result, the retailer was forced to accept $300 million in financing from Sears CEO Eddie Lampert's hedge fund, ESL Investments, in the most recent quarter.

The company is losing cash as sales plunge at its namesake and Kmart stores. Net sales fell 8.8% to $5.7 billion in the second quarter. Same-store sales plunged 7% at Sears stores and dropped 3.3% at Kmart stores.
Posted by: Fred 2016-09-15
http://www.rantburg.com/poparticle.php?ID=467555