The Sears Holding Corporation was formed in the year 2004 when the management of Kmart Holding Corporation decided to purchase Sears, Roebuck and Co. After the complete merger in 2005, both Kmart and Sears stores were operated under their own brand names.
Things started going downhill since 2011 and there was no stopping it. The company failed to realise the importance of the internet and turned a dead-eye towards it. As a result, sales began to drop drastically and their only option was to get loans. Even after obtaining large sums of money, the stocks or profit never went up. Why? Because of outdated strategies and lethargic attitude towards marketing the brand. The money was exhausted in meaningless extensions and investments when it should have been used for expanding their e-commerce presence.
Another speculation for its injury can be the mountainous load of debt. The money never seemed to be there to carry out even the most basic of services. Improvements made using the loan money did not perform well enough and therefore, the organisation had to get more money. With increasing losses and near to nothing resources, the corporation was bound to hit rock bottom soon. Loyal customers were only able to keep the company functioning till 2015, where it was named the 20th largest retailing company in the country. But, by then the water had risen high above their heads. The company was paralyzed immensely and it is not wrong to say that the sears holding corporation had dug its own grave.
The day came sooner than expected and this retail giant was forced to register a chapter 11 bankruptcy on October 12, 2018. It seems as though the holiday season could not even save shld earnings from going out. Reports suggest that the initial budget proposed based on the revenue forecasts have been altered to show a loss, till February next year. Therefore, it is clear that every investment banker or agent would be against any sort of investment in the Sears Holdings Corporation. The end of days is nearing and many would prefer not to invest.
But they can be wronged too. The stock market does not completely rely on statistical data. It can always surprise you. There comes a time for everything. Put aside all the data and invest with complete belief in the century-old brand that is shld earnings. Isn’t maintaining a brand for over a century more than enough proof for people looking to invest? If that does not suffice, then they should consider the fact that there are going to be buying stocks in a company where only two people own over 85% of the shares. This way, the stakeholders can never suffer a loss even when the company doesn’t perform well. In the beginning, they have to planned to sell huge areas of land and shutting down of several outlets are also in order. Less number of stores can help them to focus and streamline their goals accurately. This sort of aggressive action can only aid a company in becoming a formidable force in the market.