For years and years now, Sears has been taking a real beating financially, to the point where financial industry experts the world over are very, very down on their future prospects.
And even though Sears executives continue to paint a pretty picture, promising a rebound and a bounce back, the stock of Sears has dropped more than 35% over the course of 2016 – and they have just reached in agreement to sell off their entire iconic Craftsman brand in totality.
Things are getting rough and rocky (it may even be more accurate to say EVEN MORE rough and rocky) at Sears, and now experts are wondering if Kmart is going to get taken out behind the shed and put down through a bankruptcy filing.
So far though, Sears says Kmart is here to stay – though the writing on the wall may suggest something else completely.
Chapter 11 continues to plague the Sears company
For quite a while now, financial experts have been suggesting that Sears is only a step or two away from moving forward with Chapter 11 bankruptcy, but the company hasn’t ever really taken the total plunge into that kind of reorganization.
Now though, with the 35% drop in overall stock value over the course of 2016 and the selling off of the core brands that have always been a staple of the Sears business, those same financial experts are predicting things to get even worse for this American company.
A lot of people are anticipating the entirety of the Sears corporate structure to go under the umbrella of bankruptcy soon, but there are some that think that Sears is going to kill off Kmart first in an effort to create some kind of lifeboat situation that allows the Sears brand to continue without any dead weight pulling them down.
Sears executives are having a time selling prosperity and future prospects
Even though the current CEO of Sears continues to hold press conference after press conference promising that Sears is on the right track, poised to bounce back, and ready to meet the challenges of running a retail giant in our new modern economy, the very fact that he has to continue to come out and calm down public nervousness probably says a lot more about the state of Sears than anything he actually says.
Wall Street in particular is very, very down on Sears, with predictions of a lot more red ink that is going to absolutely devastate the already shrinking balance sheet that Sears has. The Craftsman brand has already been spun off, and now there is a lot of industry buzz that Kenmore and Die Hard maybe the next ones to be jettisoned before Kmart is given the executioner’s axe.
Once one of the true American icons in the business community, and maybe the world’s first truly famous retail giant, Sears is now a shell of its former self with no real sign of recovery. If it is able to create a legitimate come back it would be one of the most historic tales in all of global commerce, but it’s much more likely that Sears – right after Kmart – is going the way of the dodo.