Lampert and Mulally talk turnaround


Sears Holdings (SHLD) CEO Eddie Lampert met with Ford CEO Alan Mulally earlier this year to solicit restructuring advice, according to Reuters.

Sources indicate Lampert might have also been testing the waters to see if Mulally would consider taking the CEO job at the struggling retailer after his stint at Ford is over.

A turnaround at Sears is considered by most analysts a herculean task.

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Comments (14)
  • Ted Bear
    , contributor
    Comments (695) | Send Message
     
    I just can't imagine Mulally hitching his mule to that crapwagon.
    6 Jun 2014, 07:04 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (6204) | Send Message
     
    Lampert admits defeat and is desperate for help.

     

    Not a good sign at all.
    6 Jun 2014, 08:07 AM Reply Like
  • DrewLew21
    , contributor
    Comments (2) | Send Message
     
    Eddie could care less about the retailing business. He just wants to monetize the brands and real estate. Even in bankruptcy, he's going to make a ton of money. No one seems to care about the value of all the spin-offs he's created, or the fact he's sheilded his best assets away from creditors in the event of a bankruptcy.
    6 Jun 2014, 08:22 AM Reply Like
  • chummybeagle
    , contributor
    Comments (119) | Send Message
     
    If you believe that you have not been following Sears very closely.
    6 Jun 2014, 09:09 AM Reply Like
  • stephenrs
    , contributor
    Comments (122) | Send Message
     
    Exactly...this is the funny thing...Lampert sat down "earlier this year"? This is what we consider news?? It's so easy to be short SHLD right now, because the conventional (= mass = generally sadly misinformed) wisdom says it's going down in flames sooner rather than later. It's also funny that the people who continually express this view don't seem to be watching the publicly available insider activity around this stock, and clearly haven't read any of the detailed analyses of the underlying true and measurable market value of the assets the *holding company* (as opposed to retail dog) that the company owns...ie, "not following Sears very closely"...as I continue to add to my long position...wish me luck, and I to you.
    8 Jun 2014, 03:32 AM Reply Like
  • chummybeagle
    , contributor
    Comments (119) | Send Message
     
    By not following Sears very closely, I mean that Lampert made it very clear in the last shareholders meeting that he is not winding down the assets to unlock value on the real estate. He clearly wants to turnaround the retail operations. That was the whole reason I purchased the stock before and quickly found it that was not his intention to unlock value closer to NAV. He wants to turn SHLD into a cash generating machine from the retail ops. Unless you can present me with evidence otherwise? I think Tisch bought some more shares but aside from that the evidence seems to weigh more on the bearish side.

     

    I don't want to get into an argument over this but I do wish you good luck on your long.
    8 Jun 2014, 02:29 PM Reply Like
  • Mark Larson
    , contributor
    Comments (427) | Send Message
     
    Here's an interesting quote from Mulally this morning on CNBC when asked directly if he is going to work at Sears (paraphrased) "I have loved serving 2 American icons in Boeing and Ford. When I retire I'm really going to think about where I serve next."
    6 Jun 2014, 10:15 AM Reply Like
  • chummybeagle
    , contributor
    Comments (119) | Send Message
     
    Here's another interesting quote from Lampert:

     

    "Fortunately K-mart's turnaround gave us the foundation to begin the execution of a transformation."

     

    SHLD is about a transformation, right? Why again are people eager to hire a guy who is known for TURNAROUNDS? I thought they were different?

     

    You guys can't keep moving the goal posts when you feel like it.
    6 Jun 2014, 11:48 AM Reply Like
  • Tom2013
    , contributor
    Comments (17) | Send Message
     
    When you see them putting a fresh coat of paint on the walls, and changing the carpet and new fixtures, then I will believe Fat Cat Eddie is serious about saving
    Sears Department Stores.
    6 Jun 2014, 02:27 PM Reply Like
  • stephenrs
    , contributor
    Comments (122) | Send Message
     
    See above...this is not about the department stores. It might be about the 5th largest online retailer in the world, and the CRE it owns though. Do some research.
    8 Jun 2014, 03:31 AM Reply Like
  • pinatubo2007
    , contributor
    Comments (4) | Send Message
     
    I hear all the negative comments about Sears but it's not dated or dirty or in need of paint. It's actually my favorite place to shop. For guys, they have what we want. Tools, batteries, tires, barbecues and big screen TV's. All of retail is suffering....not just from internet sales but also because people have less money to spend. I realize I'm in the minority but this year I bought a Fridge, 2 TV's, a stove, a car battery and lots of tools at Sears. I like the store. I don't own Sears stock but I do own some bond like Saterns secured by Sears Credit. I bought them 6 years ago and they pay me 22% a year because of their junk status. They've already paid for themselves. I would not buy Sears Stock and Lampert apparently doesn't have a plan that makes too much sense other than to liquidate the company and take it back to it's roots of catalog sales which is where Warlmat is going and so many other stores with their internet sales. Sears has about one billion in cash but they have to start making money or they will end up in bankruptcy. I would like to see some scenarios for a bankruptcy. It does concern me because bond holders are supposed to be first in line in the event of a bankruptcy but if Lampert liquidates most of the good assets, what is left for bondholders. America has more retail per capita than any country in the world so we probably can expect a lot of contraction in that area.
    6 Jun 2014, 03:51 PM Reply Like
  • rube123
    , contributor
    Comments (2089) | Send Message
     
    maybe Eddie will buy the bonds , he did in Kmart , if they have already paid for them self, you have a comfort zone no one else has

     

    http://bit.ly/1hoSPx9

     

    Eddie actually believed in the retail in the beginning , he put a lot into Sears Grand , he was trying to compete with Walmart , and couldn't do it on any level

     

    look at employee relations , not much left to cut . in 1992 Sears lost a very large amount when that base pay dropped , Sears employees (sales) didn't make shi- before Eddie got there , then he lanced commissions , Walmart looks like a wall street pay compared to Sears

     

    " Sears has struggled with employee relations. One notable example was the shift in 1992 from an hourly wage based on longevity to a base wage (usually anywhere from $3.50 to $6 per hour) and commissions ranging from 0.5% to 11%. This new base wage, often constituting a substantial (up to 40%) cut in pay, was done "to be successful in this highly competitive environment."[22]

     

    In early October 2007, Sears cut commission rates for employees in select departments to anywhere from 0.5% to 4% but equalized the base wage across all Home Improvement and Electronics departments. In 2011, commission rates on non-base items were cut by 2% in the electronics department. In late 2009, the commission on sales of "base items" from the electronic department was cut to 1%. Appliances, vacuums, and mattresses are the only remaining departments where compensation is based entirely on commission. In many stores, jewelry department associates receive a low base salary with 1% commission on their sales."

     

    for the Mulally fantasy , might want to learn something about him...I imagine he probably despises Eddie , although he smiles at everybody
    don't hold your breath on Alan arguing with Eddie over Sears
    http://bit.ly/1hoSPxg
    7 Jun 2014, 07:24 AM Reply Like
  • Mark Larson
    , contributor
    Comments (427) | Send Message
     
    Lampert unloads another 412,000 shares of AutoNation late last week and early this week. He also added to SHOS.
    10 Jun 2014, 09:56 PM Reply Like
  • rube123
    , contributor
    Comments (2089) | Send Message
     
    Lampert is trying to put a floor under SHOS , he could have bought more , he only bought 10% of the shares on the 6th ($600K) , he sold $23.5 million

     

    http://bit.ly/1piT53p
    http://bit.ly/1piT53x

     

    he should have bought (F)
    SHLD and SHOS are just a matter of time , any guesses on how long before SHOS starts posting losses
    11 Jun 2014, 04:18 AM Reply Like
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