Professor Elam

Tuesday Sept 25 2018

Ed Lampert continues to prove he may be a fund manager but he is not a retailer. He has been selling what is of value like the Craftsman and Kenmore names.  Now he is floating various schemes trying to keep what is left a float.

One is a stock in exchange for outstanding debt deal which would be bankruptcy without the court.

Another is trying to sell store real estate and if unsuccessful, let the bond holders exchange for the real estate.

Lampert has consistently refused to invest in the stores themselves and this is the result.  Originally hailed as the next Buffet, he instead shows no understanding of retail and what drives shoppers to stores.

It is ironic that Sears literally invented catalog shopping. Now we have on line shopping, the same thing but with an electronic catalog and Sears is gone.