Saturday, July 23, 2016

Bluelight News Flash: Is Bankruptcy Near?

http://finance.yahoo.com/news/kmart-workers-believe-stores-going-162400821.html

While I know that it has been said that Sears Holdings could go bankrupt almost at any point, the thing that stands out to me here is that employees are giving the impression that they are expecting a bankruptcy possibly next year. I have also heard from other places that fall of 2017 could be where the stores ultimately 'fall'.

While it is hard to say, please KNOW that these are RUMORS AND SPECULATION. I would also like to express my thoughts on some of the issues with stores mentioned in linked article.

Phases of Store Liquidation
It doesn't surprise me to hear about employees' hours and such being cut. This is unfortunate to hear as everyone should get fair pay, but when you are a struggling company, something has to be done to save money. Taking it out on employees won't help though!

Having actually witnessed one of the mentioned merchandise purge, I can say that this strategy for moving product isn't as bad as the article says. The thing not mentioned here is that this is now also how Kmart stocks their shelves! From what I saw, a group of employees (possibly the majority of them) gather to stock a particular department. Sears Holdings commented saying that this helps with inventory management and that does make sense as you would be able to see all the product unboxed in the area of the store where it is supposed to be.

Those employees in the article saying that stores close after a few months may be true in some cases, but leases expiring or lack of profits are likely the better reason! This may just be one method to move product and sell as much as they can before everything is discounted for a closing sale. My local store, where I witnessed this new method a few months ago, is not closing. Sometimes I wonder if some employees like to give bad press or even just attention.... 

Structural Issues
There's no denying this. Almost any store has issues with a leaky roof from time to time, but not to the extent that Kmart does. ALTHOUGH NOT ALL STORES HAVE ISSUES, enough of them do to give the impression that all stores have them. Can you please fix this, Sears Holdings?

While I personally would like to see at least the Kmart name stick around, at the rate Sears Holdings is going we may very well see a bankruptcy in the near future. My goal is to capture every Kmart within the Twin Tiers coverage area and just about any other store I can. 

2 comments:

  1. I think everyone knows a bankruptcy is inevitable, but it's interesting to hear the employees are thinking a chainwide liquidation is underway already. You make some good counterpoints to the article, and what's really sad about all of it is that the employees' word really doesn't have any more merit than yours or mine - Sears Holdings has left them in the dark as much as all of their customers. I honestly don't know whether they truly are all liquidating in preparation for closure or not, but I certainly wouldn't be surprised if the bankruptcy were announced sometime very soon. As discussed before (I think maybe on flickr, but not certain), the only hope for the Kmart brand is likely in the hands of another company.

    Good luck with your goal! I hope you have more time to do so than the employees are thinking...

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    1. I know bankruptcy is inevitable for the company at this point. At the end of the day, I just feel bad for the employees. It must be agonizing to go to work everyday knowing that it could be your last.

      I just personally hope they can last maybe another year or so I could possibly get to some more unique locations up in New England. I've been seriously considering doing a road trip up that way at some point to visit two 2-story Kmart locations, a dinky store around 40000 sq ft, and just about any others that scream unique to me. It just wouldn't be the same to me if I couldn't go and not stop at any unique Kmart stores up there! :D

      Ironically, the Poughkeepsie store mentioned in the article is on my list to visit if I were to make that road trip.

      As far the coverage area, I actually only have 5/6-8 stores left to visit and I can get 2 of them on a trip and another 2 on another trip. I say /6-8 because while one is technically within the coverage area, I'm not positive if I'll visit it as it is on the very edge. The other two have been visited by catnapped on Flickr, so its not as urgent to me to visit those two. If I'm ever in the area for some reason and they are still open, I will definitely still go to them though.

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