Home

Sears suing Lampert for looting them

Posted By: slacktide_bitog

Sears suing Lampert for looting them - 04/19/19 12:45 AM

Kmart is a BITOG favorite, and Lampert's looting has caused Sears to close most of their stores.

Finally the company is calling him out.
Posted By: Greggy_D

Re: Sears suing Lampert for looting them - 04/19/19 12:51 AM

About 14 years too late.
Posted By: maxdustington

Re: Sears suing Lampert for looting them - 04/19/19 12:58 AM

Rumor was that he was really interested in Sears' real estate portfolio: Sears was an anchor store in a lot of malls and either owned the mall itself or the biggest unit in the mall. Their real estate assets are worth way more than their brand names or other assets. Sears was/is worth more in parts than as a whole, why else would Lampert have purchased it?

We have HBC here in Canada and they started carrying higher end brands and targeting higher end clients, but I think that will only work as long as Baby Boomers have money to spend on nostalgia. Once they are gone, they will be holding sand just like Sears.
Posted By: oil_film_movies

Re: Sears suing Lampert for looting them - 04/19/19 01:00 AM

Classic case of people at the top of a company making a grab just before their retirement.
I've seen it in the form of paying themselves exhorbitant salaries & bonuses even when a company is sinking. This one was more clever, but maybe not sneaky enough.
Posted By: CKN

Re: Sears suing Lampert for looting them - 04/19/19 01:08 AM

Originally Posted by slacktide_bitog
Kmart is a BITOG favorite, and Lampert's looting has caused Sears to close most of their stores.

Finally the company is calling him out.



Because Kmart (like Sears) literally gave things away (Shop your way points) for free. You can't stay in business that way. Not enough profits......
Posted By: SubieRubyRoo

Re: Sears suing Lampert for looting them - 04/19/19 01:19 AM

Willful failure of fiduciary responsibility is a serious crime. Although it won't restore the company to before-Lampert stature, hopefully they get a judgment against him that sends a message to all current and aspiring CEOs. Prison time would be nice, but they'd probably just stick him on a beach somewhere on our nickels.
Posted By: PimTac

Re: Sears suing Lampert for looting them - 04/19/19 01:26 AM

Originally Posted by maxdustington
Rumor was that he was really interested in Sears' real estate portfolio: Sears was an anchor store in a lot of malls and either owned the mall itself or the biggest unit in the mall. Their real estate assets are worth way more than their brand names or other assets. Sears was/is worth more in parts than as a whole, why else would Lampert have purchased it?

We have HBC here in Canada and they started carrying higher end brands and targeting higher end clients, but I think that will only work as long as Baby Boomers have money to spend on nostalgia. Once they are gone, they will be holding sand just like Sears.

This might have been true 10-15 years ago but malls have been on the decline for some time and online shopping has most of them at the brink.

Regarding mall location, stores that are in the middle do much better due to the foot traffic than stores at the ends. This was a flaw in mall design as anchor stores like Sears were placed at the ends. Sears also did this due to its auto care centers.

This action is way too late. One has to wonder what the board of directors has been doing all this time.
Posted By: 4WD

Re: Sears suing Lampert for looting them - 04/19/19 01:37 AM

Some retreat to low overhead small town stores again.
I still do business with a couple of those … One opened two years ago …
(Returning to our city) …
Getting rid of this vulture + replacement with an actual leader … would be a last great hope …
They have to stay small anyway … Walmart and Bezosmart have it all …
Posted By: Donald

Re: Sears suing Lampert for looting them - 04/19/19 01:57 AM

I think Lampert is a major reason for a lot of Sears latest issues. He seems to have done so many things to benefit himself rather than help Sears get back on his feet.

He was a financial guy not a retailer. Sears needed a retailer.
Posted By: 4WD

Re: Sears suing Lampert for looting them - 04/19/19 02:00 AM

Exactly … Fox in the hen house … companies used to fend off corporate raiders …
Posted By: maxdustington

Re: Sears suing Lampert for looting them - 04/19/19 03:02 AM

Originally Posted by PimTac
This might have been true 10-15 years ago but malls have been on the decline for some time and online shopping has most of them at the brink.

Regarding mall location, stores that are in the middle do much better due to the foot traffic than stores at the ends. This was a flaw in mall design as anchor stores like Sears were placed at the ends. Sears also did this due to its auto care centers.
Depends on the mall. I live in Toronto and the two malls I have visited the most are attached to public transit. One of them is downtown, but the other is in the borough I live in and has condos, municipal buildings and a community center within 1000m. That mall (Scarborough Town Center) also had a Sears in it. It also had a long defunct Eaton's that became a Wal Mart. My friend works at the downtown mall, the Eaton Center. It is plenty busy.

I agree, a mall in the middle of nowhere, Anytown USA is not going to have as much foot traffic or be as valuable. However, malls in population dense, arterial areas will be worth big bucks. Those anchor sized units are perfect for gyms.
Posted By: PimTac

Re: Sears suing Lampert for looting them - 04/19/19 03:14 AM

Originally Posted by maxdustington
Originally Posted by PimTac
This might have been true 10-15 years ago but malls have been on the decline for some time and online shopping has most of them at the brink.

Regarding mall location, stores that are in the middle do much better due to the foot traffic than stores at the ends. This was a flaw in mall design as anchor stores like Sears were placed at the ends. Sears also did this due to its auto care centers.
Depends on the mall. I live in Toronto and the two malls I have visited the most are attached to public transit. One of them is downtown, but the other is in the borough I live in and has condos, municipal buildings and a community center within 1000m. That mall (Scarborough Town Center) also had a Sears in it. It also had a long defunct Eaton's that became a Wal Mart. My friend works at the downtown mall, the Eaton Center. It is plenty busy.

I agree, a mall in the middle of nowhere, Anytown USA is not going to have as much foot traffic or be as valuable. However, malls in population dense, arterial areas will be worth big bucks. Those anchor sized units are perfect for gyms.




There are always exceptions to everything and perhaps Canada is different in how shoppers shop. In the US, malls are closing. Even urban malls are either shutting down or they are reinventing themselves. One idea that has been a standard in Asia is to make a mall a center of sorts. This kind of planning includes condo towers at the mall which gives it a local shopper base instantly. Offices are located at malls as well. Malls can have a variety of options and not just retail shopping. Medical clinics, spas and exercise facilities, even small hotels. It is similar to what Japan has done with major train stations where you can shop, eat, get your dry cleaning and everything else in one stop.

None of this will save Sears. They have been as dead as a can of corned beef for a decade now.
Posted By: maxdustington

Re: Sears suing Lampert for looting them - 04/19/19 04:38 AM

Originally Posted by PimTac
There are always exceptions to everything and perhaps Canada is different in how shoppers shop. In the US, malls are closing. Even urban malls are either shutting down or they are reinventing themselves. One idea that has been a standard in Asia is to make a mall a center of sorts. This kind of planning includes condo towers at the mall which gives it a local shopper base instantly. Offices are located at malls as well. Malls can have a variety of options and not just retail shopping. Medical clinics, spas and exercise facilities, even small hotels. It is similar to what Japan has done with major train stations where you can shop, eat, get your dry cleaning and everything else in one stop.

None of this will save Sears. They have been as dead as a can of corned beef for a decade now.
I'd stay in a Sears hotel if they had a Craftsman-themed room. smile
Posted By: daves87rs

Re: Sears suing Lampert for looting them - 04/19/19 06:46 AM

Malls are dead, and those with any money shop online now anyways (those who can afford it)

Most folks I know have cut their shopping quite a bit over the last 5 years, which include online. Heck, I find I need a lot less now a days.....

Sears will be long gone before the credit lines dry up in the next few years though- doubt they will even make it till June .....
Posted By: Dave9

Re: Sears suing Lampert for looting them - 04/19/19 06:58 AM

Sears was dying with or without him involved. To sue claiming he is to blame, ignores every single reason why the market made it impossible for the Sears profit model to continue.

Kids these days don't appreciate that. They have a 15 minute attention span and cheapest usually wins, so sears tried to fill both roles and cater to that too, then old timers got a knot in their britches and declared they'll never buy sears again, not even the things that were still made in the US, which if they weren't stupid, would have proved their point and been a benefit to everyone.

Instead, stupidity rules and we all lose out and whine about it instead of being happy. Folks used to just be happy about buying things then lately they have been blaming someone else. Idiot egos, screwed those of us who wanted to support US products.

There's always that "I think I'm special regardless of the fact that my specialness extends no further than wiping my own arse" and therefore I declare the cheapest thing I can find, is automatically equal to anything else made in China.

The Chinese are laughing their arses off.
Posted By: Rmay635703

Re: Sears suing Lampert for looting them - 04/19/19 07:03 AM

Originally Posted by PimTac

This might have been true 10-15 years ago but malls have been on the decline for some time and online shopping has most of them at brink.


Nah, around here they are building strip malls left and right, our local population is about the same as 1980 but we have probably 5x more retail locations.

Indoor malls are at the brink because

1. Stores entered from the outdoors pay 1/3 of the property tax as indoor malls (on average)

2. There are government backed loans for strip malls that developers commonly walk away from if they don’t get the tenants they want.

3. There is far too much retail and restaurants in general for the population and income levels, government backed loans have encouraged uneccesary building of hotels and retail space that no one needs or uses leading to inevitable decay and foreclosure

4. Semi traffic is subsidized by the government, trains are not, make the semi pay for the resources they use and amazon Prime will fail overnight since bulk single delivery locations are much less affected than individual packaging services by gas cost.
And honestly, Amazons business model only works below about $4.50 a gallon (if that) even with the subsidies.


Make indoor malls cheaper and strip malls more expensive tax wise and guess what will happen?


Our tax structure decides what business works, simple math.

Further look what sun capital did to Shopko (Which was vibrant growing and profitable)
They bought it for $800,000,000 members of sun capital sat on both boards, they decided Shopko needed to take an $800,000,000 loan after purchasing to pay reimburse themselves then continued to have Shopko take loans to pay their annual pay, this made even a very profitable store become unprofitable and then eventually after Sun capital paid itself more there was no money for creditors vendors or operations .

If a normal person were to do this it’s considered a federal crime of usurpery which carries a very heavy set of penalties and prison

Personally the members of sun capital should have all assets removed and liquidated including cars, houses, etc to pay Shopkos various interests then they should be executed since their greed damaged the lives of about 10,000 people. (And ruined dozens of businesses already)

Might set an example so special interests might think 5 seconds instead of just stealing money under a blanket of another company name, ah yeah Shopko did that because I make their decisions but belong to another company
Posted By: demarpaint

Re: Sears suing Lampert for looting them - 04/19/19 09:30 AM

Good, it's over a decade too late though.
Posted By: Sayjac

Re: Sears suing Lampert for looting them - 04/19/19 09:41 AM

Since my last post here got deleted, rephrase using article information. Also being sued, current Secretary of Treasury Steve Mnuchin, Lampert's college roommate and former director at Sears and hedge fund ESL. Also worked with Lampert at Goldman Sachs.

Good luck winning this case against these thieves. They went to the Gordan Gekko school of finance, ie., Greed is Good. This action is too little, too late. Sears/(KMart) is history and Lampert and Mnuchin will out-lawyer the plaintiffs.
Posted By: 4WD

Re: Sears suing Lampert for looting them - 04/19/19 10:52 AM

Took your word for it and ordered two starter solenoids ...
Posted By: Trav

Re: Sears suing Lampert for looting them - 04/19/19 11:05 AM

As they say, once the camel has his nose under the tent there is no getting him out, he will take the tent down first.
Posted By: billt460

Re: Sears suing Lampert for looting them - 04/19/19 11:20 AM

Does anyone believe Enron would still be alive and well today, if Lay and Skilling never existed?
Posted By: 4WD

Re: Sears suing Lampert for looting them - 04/19/19 11:34 AM

Yeah ... called EOG Resources ...
Posted By: billt460

Re: Sears suing Lampert for looting them - 04/19/19 11:43 AM

Originally Posted by 4WD
Yeah ... called EOG Resources ...

Lay and Skilling looted a sinking ship. But the torpedo's had already hit. Enron's problems, much like Sears, were deeply rooted long before these bandits came along. While they certainly proved to be no asset, they were far from the cause that killed them off.
Posted By: 4WD

Re: Sears suing Lampert for looting them - 04/19/19 11:49 AM

I know the story - we have all kinds of extra controls processes in the business world thanks to them ...
Only they still had real assets as I just indicated ...
Posted By: Mr Nice

Re: Sears suing Lampert for looting them - 04/19/19 11:52 AM

Executives at Toys aR Us got big $$$ bonuses before they closed their doors.
Posted By: billt460

Re: Sears suing Lampert for looting them - 04/19/19 12:11 PM

Originally Posted by Rmay635703
...3. There is far too much retail and restaurants in general for the population and income levels, government backed loans have encouraged uneccesary building of hotels and retail space that no one needs or uses leading to inevitable decay and foreclosure....

^^^^^^^^^^^^ This is the biggest reason. Not one or 2 individuals at the top. Too many stores. Just in my area I have at least 4 Home Depot's and 3 Lowe's stores all within 15 minutes of my house. Much the same with K-Mart / Wal-Mart. And now most every Wal-Mart you see has been transformed into a, "Supercenter". There are 5 huge outdoor sports superstores, (3 Sportsman's Warehouses, a Cabela's, and a Bass Pro Shop). All within 25 minutes of each other.

Every time I go into the closest Sportsman's Warehouse by me, the place is empty. Every time. Weekday or weekend, it doesn't matter. The only time I ever see anyone at the gun counter writing up a sale, is when I buy one. It doesn't matter how much merchandise you put, "On Sale", when there are few if any sales. They have millions in inventory, and the place costs a fortune to cool 6 months out of the year. That store will close. It's only a matter of time. As nice as it is, and as much as I enjoy shopping there, that store never should have been built in the first place.

Many of these big box retailers have simply over built. That, combined with at home Internet shopping provided by Amazon, Wayfair, and many others, are slowly bleeding them to death. Add to that personal spendable income is constantly being reduced. By the ever increasing cost of major necessities such as health care and college. And it's become a doomsday scenario for many of these type of large, overbuilt retailers.

It wasn't that long ago we were awash with electronic superstores. 2 of the biggest, (Comp USA and Circuit City), are long gone. And the 2 Best Buy's near me are always in the same condition as Sportsman's Warehouse when I go in....... Empty. Same with Office Depot and Office Max. Both of which recently merged to stop the financial bleeding they were both experiencing. Sears is going to have a lot of company in the upcoming next few years.
Posted By: Mr Nice

Re: Sears suing Lampert for looting them - 04/19/19 01:00 PM

Amazon is the best to shop.... unless its clearance synthetic oil for 49 cents a quart at a local retail store.

I agree with others about staying home, save time and zero hassles waiting to park / check out at register, dealing with rude customers / shoppers and then drive home when everything can be done with Amazon.

Amazon credit card + Free Shipping makes it a no brainer to shop at Amazon.
Posted By: PimTac

Re: Sears suing Lampert for looting them - 04/19/19 01:29 PM

Amazon has been raising prices and cutting back on its two day delivery promise to Prime members.


As I have mentioned many times here and elsewhere, when a store has more employees than customers, it is dead.
Posted By: 4WD

Re: Sears suing Lampert for looting them - 04/19/19 01:34 PM

I don't buy anything from Amazon and I buy lots of things ... My problem is not what I buy ... it's what he bought ...
Posted By: JohnnyJohnson

Re: Sears suing Lampert for looting them - 04/19/19 02:31 PM

Originally Posted by Greggy_D
About 14 years too late.


This in my mind Eddie has robbed them blind filling his own pockets.
Posted By: SeaJay

Re: Sears suing Lampert for looting them - 04/19/19 03:07 PM

There is an extremely high bar from finding a "colorable" claim against Lambert. There is a 2,000 page review of what went on at Lehman brothers that concluded that the business decisions were all based on informed management judgment, and that there wasn't a colorable cause of action against management. Eddie looks like a piker compared to what went on at Lehman brothers.
Posted By: billt460

Re: Sears suing Lampert for looting them - 04/19/19 05:29 PM

Here is a reason, (one of many), as to why big box specialty stores are dying. My little dog was having skeletal and joint pain issues in the colder weather. The vet recommended we try one of the Cosequin joint therapy dog treats. I went to Pet Smart and found Cosequin Mini's for small dogs. I reluctantly purchased a small bag for $27.00. That seemed very high, and I wasn't sure he would like them. Or even if he did, if they would benefit him. But I decided to take a chance, and purchased them anyway.

As it turned out he absolutely loved them, and responded to them well. (All of his joint pain and problems disappeared). So I looked on Chewy.com. I found the exact same thing for just $12.50 @ bag. (Same size). Less than 1/2 of what Pet Smart was charging. I promptly ordered 4 bags. They arrived the very next day right at my door. $12.50 with no tax and a very modest shipping charge, vs. $27.00+ tax, for the exact same thing. And I had to drive 8 miles round trip to get it.

This is very typical with many other products as well. Shopping on line is very convenient, and usually MUCH cheaper. Pet Smart and Petco are yet 2 more large scale, specialty retailers that I see very few people in when I go. Lot's of inventory in a huge building, that isn't selling to the degree it must in order to survive. The walls are closing in on these places. It's only a matter of time.
Posted By: Rmay635703

Re: Sears suing Lampert for looting them - 04/19/19 06:09 PM

Originally Posted by billt460
Here is a reason, (one of many), as to why big box specialty stores are dying

The vet recommended we try one of the Cosequin joint therapy dog treats. I went to Pet Smart and found Cosequin Mini's for small dogs. I reluctantly purchased a small bag for $27


I’ve found the opposite on most products

The 2nd chance “Organic and Specialty” store which is 2 miles from my home is small but has a lot of odds and ends Cosequin is $6.50 a bag there, never knew what it was for though.

I get a lot of $30 bags of designer dog food there for $5 or less, Vitamins are priced the same way, as are the $6 big jugs of delo oil there.

It seems between Woodmans a big box and small local retailers that don’t even take credit cards I can get most anything for less than amazon, there are a lot of things I would have never known about that I tried because I went through a physical store and they were on the rack.

Add based systems like Amazon direct you to what they want and you loose out on small batch products like Weyewega Keifer, $2 a pound organic elk
and Badger spicy pork rinds three products I would have never purchased except I noticed them on the shelf and liked the price and ingredients
© 2019 Bob Is The Oil Guy