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Wow, the downfall of Sears is much slower motion than I ever expected. I thought they'd be a ghost by now.

by mark-r 7y ago

Digory 7y ago
Lampert isn’t a genius in turnarounds. He’s a genius in the art of prolonging corporate death.
- drawkbox 7y ago
  Yeah the goal is to extract the most cash/value/assets as possible, the delays benefit that for the value extractors. Leveraged buyouts are designed to slow bleed for this reason, bring down the cost both in growth prospects diminishing slowly and wearing resistance out so people sell low. Walgreens is entering one right now or soon if not now, they are a target of private equity.[1] It won't end well for consumers or employees or public market holders, just the value extractors, they will cash in while they cash out Walgreens. > Walgreens Boots Alliance shares surged Wednesday amid speculation that the U.S.-listed drugstore group has been considering a $70 billion take-private deal. > If private equity can pull it off, it would be the biggest leveraged buyout ever, dwarfing the $45 billion transaction in which energy group TXU was taken private in 2007, just a year before the financial crisis rocked global markets and prompted unprecedented intervention by global central banks. [1] https://www.marketwatch.com/story/walgreens-possible-70-billion-buyout-is-a-clear-sign-the-stock-market-rally-is-about-to-end-2019-11-06 https://www.marketwatch.com/story/walgreens-possible-70-bill...
  - mark-r 7y ago
    I once had to read the book "Good to Great", and Walgreens was used as a prime example throughout the book. They drove their success by having a fanatical focus on convenient locations. I saw it once myself, they closed a store and opened a new one right across the street because it was a better location. I always wondered how that strategy was faring once grocery stores started including pharmacies.
vkou 7y ago
K-Mart filed bankruptcy 17 years ago, and Eddie Lampert has been picking through its bones for the past 16 of them. Retailers take a really, really long time to die.
- haggy 7y ago
  Retailers that used to bring in $55billion per year take a long time to die.

Wow, the downfall of Sears is much slower motion than I ever expected. I thought they'd be a ghost by now.

by mark-r 7y ago

Wow, the downfall of Sears is much slower motion than I ever expected. I thought they'd be a ghost by now.

Digory 7y ago

Lampert isn’t a genius in turnarounds. He’s a genius in the art of prolonging corporate death.

drawkbox 7y ago
Yeah the goal is to extract the most cash/value/assets as possible, the delays benefit that for the value extractors. Leveraged buyouts are designed to slow bleed for this reason, bring down the cost both in growth prospects diminishing slowly and wearing resistance out so people sell low. Walgreens is entering one right now or soon if not now, they are a target of private equity.[1] It won't end well for consumers or employees or public market holders, just the value extractors, they will cash in while they cash out Walgreens. > Walgreens Boots Alliance shares surged Wednesday amid speculation that the U.S.-listed drugstore group has been considering a $70 billion take-private deal. > If private equity can pull it off, it would be the biggest leveraged buyout ever, dwarfing the $45 billion transaction in which energy group TXU was taken private in 2007, just a year before the financial crisis rocked global markets and prompted unprecedented intervention by global central banks. [1] https://www.marketwatch.com/story/walgreens-possible-70-billion-buyout-is-a-clear-sign-the-stock-market-rally-is-about-to-end-2019-11-06 https://www.marketwatch.com/story/walgreens-possible-70-bill...
- mark-r 7y ago
  I once had to read the book "Good to Great", and Walgreens was used as a prime example throughout the book. They drove their success by having a fanatical focus on convenient locations. I saw it once myself, they closed a store and opened a new one right across the street because it was a better location. I always wondered how that strategy was faring once grocery stores started including pharmacies.

vkou 7y ago

K-Mart filed bankruptcy 17 years ago, and Eddie Lampert has been picking through its bones for the past 16 of them. Retailers take a really, really long time to die.

haggy 7y ago
Retailers that used to bring in $55billion per year take a long time to die.