The $6 billion blunder that killed Sears
Would $6 billion in cash have kept Sears out of bankruptcy?
It sure wouldn't have hurt. Sears' ability to stay in business is in doubt after the company filed for bankruptcy protection this month.
Yet Sears spent $6 billion buying back its own shares since 2005 in a futile effort to help support its stock price. The stock plunged more than 99% in value, from a high of $143.91 in 2007 to less than $1 a share a couple of weeks before its bankruptcy filing. In bankruptcy, the shares are essentially worthless.
"If they had put $6 billion into upgrading stores and website development, they could be in a very different position right now," said William Lazonick, a retired University of Massachusetts economics professor and an expert in share repurchases. "They could be in a much better position to compete in the changing world of retail."
Sears could have used the money to reduce its debt burden and provide the working capital needed to keep the company out of bankruptcy.
The company had more than $5 billion debt on the books at the time of the bankruptcy filing. Ahead of the filing, Sears chairman and primary shareholder Eddie Lampert had proposed a plan to sell assets and renegotiate debt down to $1.2 billion, which he argued was all Sears could afford.
https://www.msn.com/en-us/money/companies/the-dollar6-billion-blunder-that-killed-sears/ar-BBP7kGI?li=BBnbfcN
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Who could possibly have foreseen that? It's a good thing no executives were richly rewarded for such blindness and blunder.
(add about 50 more of those)
no fore thought, no plan to put forth accept mergers with other companies in the spread sheet, consolidation of assets, with no plan..........................but he had one plan.....................fucking the pensioner's, while get got his................fucking vulture capitalist, just like Bain, Trump, you can go down the list of hedge funds or fraudsters that have in some cases just fucked people over.................
