Sears Death Watch
From Tyler Durden at Zero Hedge:
Two weeks ago, when we first announced the catastrophic earnings preannouncement by Sears we noted that we were stunned “that as part of its preannouncement, Sears has decided it would be prudent to provide an update on its credit facility status as well as availability. As a reminder to anyone and everyone – there is no more sure way of committing corporate suicide than openly inviting the bear raid which always appears whenever the words “revolving credit facility” and “availability” appear in the same press release. Just recall MF Global. And here, as there, we expect shorting to death to commence in 5…4…3…” Subsequently, when the company was downgraded to triple hooks S&P we said that “Accounts Receivable about to become one big perpetition charge off”, the implication naturally being that the company is about to lose its vendor financing – which for retailers is the last step before outright default. Sure enough, the WSJ reports that this is precisely what happened. “Struggling Sears Holdings Corp. suffered another setback when a large lender said it would no longer finance loans to suppliers awaiting payment from the company.
From commenter, Alex Kintner:
Looks like I will out-live the lifetime warranty on my Craftsman tools.
From commenter, The Axe:
Tyler, it seems that Eddy lampert used Sears cash to purchase 4.8 million shares over the last few days, from ESL investors which Eddy Lambert seems to be a partner…it smells…..I think…..
Edward S. “Eddie” Lampert (born July 19, 1962) is an American businessman and investor. He is the chairman of Sears Holdings Corporation (SHLD) and founder, chairman, and CEO of ESL Investments.