Eddie Lampert's Debacle at Sears
This morning, the papers are rife with stories about the debacle that is Sears (SHLD).
Once America's largest retailer, it now finds itself between a rock and a hard place -- down market from Target, but not as cheap as Wal-Mart.
Jesse Eisinger's piece in Portfolio -- The Marriage From Hell -- is a must read; he calls to task the man who has been prematurely called "the Next Warren Buffett."
Lampert's most recent investment's have been in Citigroup -- at significantly higher prices. (Not very Buffett-like)
You can then round out the morning with the WSJ (Why Sears Must Engineer Its Own Makeover) and NYT (Sears Warns of Another Steep Drop in Profit).
~~~
Go figure: A hedge fund manager with no retail experience is having a hard time turning around these two faded giants on the cheap . . . Who ever could have seen that coming?
>
Sources:
The Marriage From Hell
Why Eddie Lampert's failing Sears-Kmart experiment could mean trouble
for dealmakers everywhere
http://www.portfolio.com/news-markets/national-news/portfolio/2008/01/14/Kmart-Sears-Merger
Why Sears Must Engineer Its Own Makeover
Retailer's Profit Warning Signals a Persisting Slide; Rivals Hurt Storied Brands
GARY MCWILLIAMS
WSJ, January 15, 2008
http://online.wsj.com/article/SB120031054573888263.html
Sears Is No Berkshire Hathaway, Just A Troubled Retailer
Maxwell Murphy
Dow Jones, January 14, 2008: 03:00 PM
http://money.cnn.com/news/newsfeeds/articles/djf500/200801141500DOWJONESDJONLINE000635_FORTUNE5.htm
Sears Warns of Another Steep Drop in Profit
MICHAEL BARBARO
NYT, January 15, 2008
http://www.nytimes.com/2008/01/15/business/15sears.html
Lampert: Architect of Sears-Kmart Deal Compared To Buffett
Greg Levine,
Forbes, 11.17.04, 5:49 PM ET
http://www.forbes.com/2004/11/17/1117autofacescan05.html
Tuesday, January 15, 2008 | 06:44 AM | Permalink
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Comments
Lampert should have sold the real estate when it would have commanded a high price. He should have hired a management team with extensive retail experience.
I do give him credit for cleaning up K-Mart, but the prices for staples there are high, and its cooler to shop at TGT. SEARS needs to get rid of their line of junky, smelly clothes. It's still a good place to buy tires.
Posted by: Deborah | Jan 15, 2008 7:28:00 AM
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