Nobody can defy the laws of economics forever. Whether it is an individual, a company or the nation as a whole, reality always catches up with everyone eventually. For years, I have been warning that Sears was eventually going to zero, but of course it didn’t happen immediately. Sears CEO Eddie Lampert kept convincing investors to pour more money into his beleaguered money pit, and so the can kept getting kicked down the road. It takes a great con man to be able to pull off what Eddie Lampert was able to pull off, and we should all be in awe at the level of skill that he has displayed. But all good cons eventually come to an end, and now the retailer that was once the largest in world history is coming to an end. According to multiple media reports, a Sears bankruptcy filing is imminent. For a while there it looked like it would be a Chapter 7 filing which would mean immediate liquidation for Sears. But it appears that Lampert will be able secure enough funding to give Sears a little bit of breathing space. A Chapter 11 bankruptcy filing will allow most of the stores to stay open through the holidays and will give Sears more time to sell off more assets.
I can’t even imagine who would be dumb enough to hand Lampert more money at this point, and this is yet another example that shows that the old saying “a sucker is born every minute” is definitely true.
And we are not talking about a small amount of money. According to USA Today, Sears is going to need between 300 and 500 million dollars just to keep operating through the holidays…
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