I would seriously reconsider purchasing anything from Sears that may need to be warrantied at some point.
Sears Holdings is currently considered one of the worst possible stocks on Wall Street and, unless something drastic happens, is soon to be in bankruptcy. I personally can't see any way out of the Sears/Kmart 12 year free fall and more than a decade of year-over-year losses. When that happens, even if someone purchases the Craftsman name for the tool brand, the warranty will be pretty useless-it's only as good as the company that issued it. I can't imagine anyone purchasing and continuing the Craftsman lawn and garden equipment line; there are simply too many other quality players in that market to make it profitable for anyone to purchase and continue a sullied nameplate. Even their tool line isn't what it once was.
Sears Hanging By A Thread
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This coming Thursday morning’s Q2 report may finally be the one that prompts the last of the optimists and insiders to acknowledge what everybody else seems to already know. That is, Sears is broken beyond repair, and none of the fixes address the core retailing problem the company faces.
Quote:
As of the end of the first quarter, Sears was down to $286 million in the bank and had just posted a $471 million loss. The recently completed second quarter will likely result in a similar loss, begging one key question … how does Eddie Lampert plan on continuing to pay the bills?
Credit is one way. The company explained it had $265 million worth of credit available at the end of Q1, and could monetize up to $300 million worth of assets if need be. There’s a very good chance the remainder of the credit facility has been tapped in the meantime though, and each time it sells an asset, the company crimps its ability to create much-needed profits.
