Sears Sells Craftsman Division

[amirm]

For those of you in US, I am sure you all remember the great reputation Craftsman had in tools, led by their lifetime warranty. Over the years they started to sell a lot of chinese junk but some of their tools are still nice. Alas, the assault of online sales led by Amazons of the world, is threatening their very existence. So to raise money they are selling the division to Stanley which like Craftsman, used to have great reputation but today sells mostly Chinese junk in big hardware stores.

https://www.wsj.com/articles/sears-sells-craftsman-brand-to-stanley-black-decker-1483623215

Sears Buys Time With Craftsman Brand Sale, Store Closures
Cash-strapped retailer will sell its brand of tools to Stanley Black & Decker for about $900 million

 

[DonH56]

That was announced several months ago, is it final? Shame, an icon, and a lot of their tools are made by Western Forge just down the street from where I work.

 

[amirm]

It was but looks like it can be backed out! https://www.usatoday.com/story/mone...ings-stanley-black-decker-craftsman/99484390/

"The Craftsman sale, a deal valued at about $900 million, was announced in January and completed March 9.

Other recent transactions, including Sears' 2014 spin-off of retail chain Lands' End, could also be unraveled if the company is deemed to have been insolvent at the time, Sears warned.

The warnings stem from laws that require bankruptcy judges to examine recent transactions in which debtors shed assets to determine whether those deals unfairly extracted value that otherwise would have gone to senior creditors.

If the deals were deemed to violate "fraudulent conveyance and transfer laws and legal capital requirements," the buyers of Sears assets could be required "to turn over value to other entities involved in the transaction and contemplated transactions for the benefit of unpaid creditors," Sears said in the filing."

 

[Blumlein 88]

Since last year they have been trying to sell off their Kenmore appliance division as well. Apparently no takers. If they don't have appliances or tools, not much reason to go there in my opinion. They have closed all stores that used to be near me. So they are making it hard to bother going there as it is.

It would appear without some drastic and wise pivots they are a dead company walking. These little efforts to raise cash and soldier on hoping for better is just prolonging the obvious.

 

[RayDunzl]

What happens to the lifetime warranty on my chewed up screwdriver?

 

[amirm]

The original press release says they will honor it. Not sure where you take it though, Sears or deal with heaven knows who at Stanley.

 

[dallasjustice]

I remember American Airlines was allowed to loot most of TWA's assets during bankruptcy. It looks like the hedge fund guys want to get started a little earlier this time.

It was but looks like it can be backed out! https://www.usatoday.com/story/mone...ings-stanley-black-decker-craftsman/99484390/

"The Craftsman sale, a deal valued at about $900 million, was announced in January and completed March 9.

Other recent transactions, including Sears' 2014 spin-off of retail chain Lands' End, could also be unraveled if the company is deemed to have been insolvent at the time, Sears warned.

The warnings stem from laws that require bankruptcy judges to examine recent transactions in which debtors shed assets to determine whether those deals unfairly extracted value that otherwise would have gone to senior creditors.

If the deals were deemed to violate "fraudulent conveyance and transfer laws and legal capital requirements," the buyers of Sears assets could be required "to turn over value to other entities involved in the transaction and contemplated transactions for the benefit of unpaid creditors," Sears said in the filing."

 

[Jinjuku]

The landscape is changing to specialty outlets and the we do 'Clothing, Cosmetics, Tool, Lawn, Bedding, Furniture, Optometry, Hearing aids..." etc just doesn't fly anymore with all the vertical retail diversity.

Honestly I don't like shopping there because the most time consuming portion is the laborious check out. Just ring the stuff up, don't ask me a ton of questions, no I'm not a moron that wants to use your 20% APR store credit card, no I don't want to give you my phone number, no I don't want to wait while you print 18 'coupons'.

I just want the wrench in a bag and a receipt so I don't get tackled in the parking lot.

 

[Blumlein 88]

The landscape is changing to specialty outlets and the we do 'Clothing, Cosmetics, Tool, Lawn, Bedding, Furniture, Optometry, Hearing aids..." etc just doesn't fly anymore with all the vertical retail diversity.

Honestly I don't like shopping there because the most time consuming portion is the laborious check out. Just ring the stuff up, don't ask me a ton of questions, no I'm not a moron that wants to use your 20% APR store credit card, no I don't want to give you my phone number, no I don't want to wait while you print 18 'coupons'.

I just want the wrench in a bag and a receipt so I don't get tackled in the parking lot.

That is one reason I think Amazon's brick and mortar stores might take off. They identify you as a customer when you go in. Automatically of course. You go pick up your items which is handled eletronically (maybe RFID not sure) and you walk out with items. There is no check out. It simply shows up on your Amazon account.

I too hate the long drawn out garbage at so many check outs now. Being to able simply walk out would be the nail in the coffin. If the bozo CEO at Sears had a clue, one big innovation like that might really save the company. Instead he put out statements today about how Sears has an abundance of customers thank you, it was the fake news of them about to bankrupt that was clouding everything they do and keeping them from prospering. OH, and they were better off than JC Penney's, Macy's and maybe Target, maybe not financially he added, but better positioned. Spoken just like someone who will soon go out of business if you ask me. Sounds like he believes they can sell off assets and stick around until Macy's or Penney's goes under and pick up those customers to be okay. Not a fix to anything.

 

[amirm]

Last time I went to buy a wrench from Sears, they had locked up the darn thing behind glass! So first had to find someone to unlock and get me the wrench and then wait to check out. All of this on top of having to drive there.

Best thing they did and they should do more of it, is offer some of their wrenches at Amazon and Costco.

 

[Thomas savage]

Last time I went to buy a wrench from Sears, they had locked up the darn thing behind glass! So first had to find someone to unlock and get me the wrench and then wait to check out. All of this on top of having to drive there.

Best thing they did and they should do more of it, is offer some of their wrenches at Amazon and Costco.

If I saw you coming, I'd lock my tools away too...