/ November 17, 2004 01:07 PM
All I can really say about this is WTF? I mean the K-Mart name is tainted, the Sears name has been going crappy for awhile and now merged together they are supposed to change their collective bankrupt asses into a respectable name and store? Color me skeptical, but this seems ridiculous.
Discount retailer Kmart Holding Corp. will buy department store operator Sears, Roebuck & Co. in a $11.5 billion deal unveiled on Wednesday, creating the third-largest U.S. retailer.
The new company, Sears Holdings, will have $55 billion in annual revenue, nearly 3,500 retail stores and 394,000 employees. Both company names will be used on stores, but some Kmart stores will convert to the venerable Sears nameplate.
Accidental Verbosity has some excellent comments on this. As does The Moderate Voice as always.
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Posted by Digger on November 17, 2004 01:07 PM (Permalink)
I cannot believe I am getting involved in this moronic subject, but i need to be educated: if this new K-Sears-Mart is the 3rd biggest retail group, and I assume Wal-mart (who even have stores here in China, considered upmarket by the locals, ha ha), who is number 2 ??
By the way, I once bought 3 white cotton shirts in K-Mart Phoenix AZ, and they were great value for money, lasting years of office abuse. Made in USA too. Trouble was, I looked like a total boolax, as everyone else there was dressed like they had bought stock in the world's geatest plaid manufacturer (and levi's).
Posted by: keith on November 17, 2004 10:24 PM
Hey Keith, Number 2 is Home Depot.
Posted by: Digger on November 18, 2004 07:04 AM
Just a note here: How the Hell can a "Bankrupt" Company buy anything? Let alone a 11 Billion Dollar purchase?
Things sure have changed in this world in the last 20 years!
Yeah, I know, "Leveraged Buyout", but Jeez, howcome I, as an Individual, can't do that? Just think, I could have that 60 inch plasma TV I always wanted, and a new Beemer, an' a . . . Well you get the Idea . .
Posted by: large on November 18, 2004 08:02 AM
Haha, I hear ya large.
I believe K-mart emerged from bankruptcy in April of 2003 or somewhere thereabouts. You think they'd concentrate on building up their existing business though after coming out of bankruptcy and not focus on merger and aquisitions, especially on the order they have undertaken trying to merge these two behemoths systems etc.
It's like management said "Well we've pulled it off, We've managed to pull ourselves out of bankruptcy! Now lets really try and screw ourselves up by making an $11 billion dollar purchase!"
It's like the guy who filed bankruptcy on $10k in credit card debt and then a year later charges up $50k in credit card debt while still having the same job and pay rate.
Posted by: Digger on November 18, 2004 08:10 AM
WTF!? How can a bankrupt company buy Sears for 11.5 billion?!
Posted by: Sexybaby on November 22, 2004 04:17 PM
well, .... Sears' reputation for quality has floundered in recent times. However. It is a mecca for handymen, as well as professional tradesmen. Very good dependable tools, with an ironclad warranty. If there is an inovation in the tool industry, you can bet Sears is the first to stock it.
That part of Sears is still well respected, and untouchable. everyone has tried to take that from them, and all have failed. Including K-Mart, with their benchcraft line.
That said, K-Mart (formerly Kresges) has always had a reputation for poor quality items, and difficult return policies. It is with this in mind that I forsee pending disaster for what has become an American institution - Craftsman Tools.
Posted by: Scott Jones on November 25, 2004 03:17 PM