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Why would anyone give them $250M? Is there any reason to think that Sears is going to be able to save itself from its inevitable demise? Sears used to be a tru

Why would anyone give them $250M? Is there any reason to think that Sears is going to be able to save itself from its inevitable demise? Sears used to be a trusted household brand -- my parents bought everything there, clothes, TV, tools, kitchen and household appliances -- but that hasn't been the case for years, maybe decades. Craftsman used to be a good brand for the non-professional, but those days are long gone.

nradov 7y ago
Stanley Black & Decker is trying to resurrect Craftsman through a partnership with Lowe's. The tools themselves are probably as good as any other mid-range tools targeted at DIY customers.
- Johnny555 7y ago
  The tools themselves are probably as good as any other mid-range tools targeted at DIY customers Not in my recent experience -- I got a tool set for Christmas 2 years ago -- the ratchet broke on first use (the retaining clip that held it together either broke or was never installed), one of the box-end wrenches snapped off while trying to loosen a tight (but not corroded) screw on a lawnmower. I think craftsman still has a lifetime warranty, but I didn't even try to replace the broken tools, I bought replacements of Home Depot's store brand (Cobalt?) and found them to be of better quality. A couple years further back I bought a Craftsman floor jack, it broke on first use, a pivot pin was missing, so the entire jack arm bent over to the side when I tried to lift my car -- it wouldn't retract so I had to use my car's tire jack to lift the car enough to get the broken jack out. I took it back to the store and the clerk said "Put it over by that other one", and that other one had the exact same problem.
  - mod 7y ago
    > I think craftsman still has a lifetime warranty No, although some 3rd party stores will still honor it. > cobalt Kobalt, yeah. They're possibly better, but probably not. I own a few things from them that have been perfectly functional, no complaints, but not high-quality. I have very few modern craftsman tools--most of my hand tools are vintage--but I've found them to be comparable. I wouldn't be surprised if they all come from the same factory somewhere.
    - Johnny555 7y ago
      I have a lot of old hand-me downs from my father, his old craftsman stuff is still great. My brother got most of his Snap-on stuff (he uses it daily in his business, he needs the good stuff) and that stuff is fantastic -- some of it's had 20 or 30 years of heavy use. Though you pay the price for it (more than I'm willing to pay to turn a bolt on my lawnmower a few times a year :-) )
- maxerickson 7y ago
  They either don't have real tight control over it or aren't really trying to resurrect it. Menard's, the worst big box DIY/builder store, stocks some crappy looking junk with Craftsman branding.
fullshark 7y ago
Same reason anyone does, they expect a positive return given the terms. Staying open / selling assets = cash flow.
- Johnny555 7y ago
  Yes, so that's my question, why do they expect this money losing retailer to turn around and not only stop losing money but also be able to pay back a $250M investment? Does Sears still own anything of value? Even if they own a lot of their stores, under today's retail climate I don't see that real estate being worth much.
  - jjeaff 7y ago
    There is probably well over $250m in inventory alone even if assessed at liquidation value. So it's probably a safe investment and the terms of the loan probably have liquidation preference.

nradov 7y ago

Stanley Black & Decker is trying to resurrect Craftsman through a partnership with Lowe's. The tools themselves are probably as good as any other mid-range tools targeted at DIY customers.

Johnny555 7y ago
The tools themselves are probably as good as any other mid-range tools targeted at DIY customers Not in my recent experience -- I got a tool set for Christmas 2 years ago -- the ratchet broke on first use (the retaining clip that held it together either broke or was never installed), one of the box-end wrenches snapped off while trying to loosen a tight (but not corroded) screw on a lawnmower. I think craftsman still has a lifetime warranty, but I didn't even try to replace the broken tools, I bought replacements of Home Depot's store brand (Cobalt?) and found them to be of better quality. A couple years further back I bought a Craftsman floor jack, it broke on first use, a pivot pin was missing, so the entire jack arm bent over to the side when I tried to lift my car -- it wouldn't retract so I had to use my car's tire jack to lift the car enough to get the broken jack out. I took it back to the store and the clerk said "Put it over by that other one", and that other one had the exact same problem.
- mod 7y ago
  > I think craftsman still has a lifetime warranty No, although some 3rd party stores will still honor it. > cobalt Kobalt, yeah. They're possibly better, but probably not. I own a few things from them that have been perfectly functional, no complaints, but not high-quality. I have very few modern craftsman tools--most of my hand tools are vintage--but I've found them to be comparable. I wouldn't be surprised if they all come from the same factory somewhere.
  - Johnny555 7y ago
    I have a lot of old hand-me downs from my father, his old craftsman stuff is still great. My brother got most of his Snap-on stuff (he uses it daily in his business, he needs the good stuff) and that stuff is fantastic -- some of it's had 20 or 30 years of heavy use. Though you pay the price for it (more than I'm willing to pay to turn a bolt on my lawnmower a few times a year :-) )
maxerickson 7y ago
They either don't have real tight control over it or aren't really trying to resurrect it. Menard's, the worst big box DIY/builder store, stocks some crappy looking junk with Craftsman branding.

fullshark 7y ago

Same reason anyone does, they expect a positive return given the terms. Staying open / selling assets = cash flow.

Johnny555 7y ago
Yes, so that's my question, why do they expect this money losing retailer to turn around and not only stop losing money but also be able to pay back a $250M investment? Does Sears still own anything of value? Even if they own a lot of their stores, under today's retail climate I don't see that real estate being worth much.
- jjeaff 7y ago
  There is probably well over $250m in inventory alone even if assessed at liquidation value. So it's probably a safe investment and the terms of the loan probably have liquidation preference.