Author Topic: Sears Loss/Wants To Sell Service Agreement Unit  (Read 1755 times)

Offline john63

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Offline niobrara

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #1 on: May 23, 2013, 10:48:22 PM »
Well that is interesting. Not a surprise , but interesting.

Offline LowSL2

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #2 on: May 24, 2013, 12:26:22 AM »
Oh great. I'm sure there will be a required conference call about this tomorrow. There goes my productivity...

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Offline Wedgeman55

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #3 on: May 24, 2013, 02:37:09 AM »
Next, they'll sell the repair unit.   I have a friend who works for sears as a multi-store manager for their auto centers and he told me he heard they might be selling or cutting repair unit.   This could be the start of it.   
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Offline LowSL2

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #4 on: May 24, 2013, 09:08:07 AM »
They've been talking about selling the repair business for years. I think they can't shut it down. It's one if those things where it's "too big to fail". I'm sure the last straw will be to fire all of the technicians and hire independents on a contract basis to run calls for their third party contacts and service agreements.

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Offline wildimaginations

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #5 on: May 25, 2013, 10:18:14 PM »
The service side has a very high value and is worth a lot of money to someone who wants that business end of it.  Expect major changes on the Sears side as it finds a buyer.  If the right buyer comes along and makes the service department do what it's supposed to do, it could be damaging for us independents.  As for Sears, it gets a lot of cash into its bank account.
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Offline andersenappliance

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #6 on: May 28, 2013, 03:15:40 PM »
"We plan to hold more press conferences and conference calls while going slowly broke by hollowing out recognized brand names like Craftsman and providing increasingly poor service in all aspects of our business.  We are looking forward to heightened stock options by levering the market capitalization through stock buy-backs and sales rumours.  We are forecasting increasing applications of golden parachutes and expect an easy transition to retirement."  Chief Financial Officer Robert Schriesheim said on a post-earnings call with analysts.

In a follow-up release, Sears is now rated a "buy" by CNBC's Jim Cramer and Nobel winning economist Paul Krugman.

Offline niobrara

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #7 on: May 28, 2013, 07:13:31 PM »
LOL   :rofl:

Offline wildimaginations

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #8 on: May 28, 2013, 09:06:51 PM »
Hey, don't knock it. Wait till they get rid of all the servicers and that department.  Think of all the cash they save.

http://finance.yahoo.com/q?s=SHLD&ql=1

But take a look at this other Sears stock that I found.  This is Sears Hometown and Outlet Stores, INC which apparently is different from the Sears Holding and it's a making money.

http://finance.yahoo.com/q?s=SHOS&ql=0
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Offline niobrara

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #9 on: May 28, 2013, 09:19:46 PM »
When they get rid of service,yes they save money. They will also bring in less. If you look at what they owe, you wonder how they will ever repay that large of a amount.

Offline wildimaginations

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #10 on: May 28, 2013, 09:24:24 PM »
They will go either negotiate their creditors for extra time, reduced payments or balances or just straight into bankruptcy. 
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Offline LowSL2

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #11 on: May 29, 2013, 04:21:45 PM »
They will lay off all the techs and contract with independents to run calls. They'll save money. And the stockholders will love it. They're already doing it in the bay area.

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Offline andersenappliance

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #12 on: May 29, 2013, 06:11:27 PM »
Going with independent contractors...? 

That is interesting.  Just after I decided to go into appliance repair (after 2008 collapse) I heard that Sears was laying off appliance salespeople and hiring repair techs.  Matter of fact, I went to one of their hiring meets in the Bay Area.  They were interviewing quite a few people, and there were quite a few of these events scheduled around the bay.

Everyone got interviewed, but the ones that didn't pass the test got a brush-off interview by HR Drones.  There were two tests: One was personality - pretty obvious questions to see if you'd play nice with others.  "T/F? I sometimes speak without thinking when angry or irritated."  "It is ok to steal from your employer when they: A) Make you mad.  B) Have lots of stuff.  C) Change your schedule.  D) It is never ok to steal from your employer.

The electrical test had questions about using a voltmeter and which side of the socket should be the common.  I don't remember much else about it, but it was pretty basic.  They promised training.  I got a real interview, but I never got a call back because (I think) they did not like the fact that my appliance repair experience was in my own business.  She asked if I'd keep trying to get my own customers while working for them, and I said no, I was tired of getting my own customers...that's why I was talking to them now.  I don't think she bought it.  I was more interested in any training they'd offer, but I never found out what that'd be.

Anyway, it is a bit strange that they'd go on a hiring binge, then turn around an go the other way.  But I hear the company is basically owned by a hedge fund.  Those don't look much beyond the next quarter's forecasts from what I hear.  The one that owned Mervyn's loaded it up with debt, transferred the real estate assets to another entity, paid fat distributions to the stockholders and let it go into bankruptcy.  Doesn't seem that'd be legal to me, but maybe high finance is very close to three-card monte.  I some how doubt that one can get too much money by being scrupulously honest and dealing fair with everybody.

I can't see how Sears can do the contracting with independents on that scale.  They'd still need their scheduling infrastructure, and that doesn't seem to be working too well at the moment.  Would independents want their name involved with that level of service? The only cost savings I can see would be in the employee related costs for techs, and in the cutting out of the service managers.  Are independents going to fix Sears stuff for $14-17/hr?  Would they even do it for $40/hour with out the parts margin?  Seems sketchy to me. 

But then again, I'm not a hedge fund.  I am independent, though, and I am not likely to entertain offers from the big boys to jump through their hoops, play their games, get paid their prices, and worry about keeping them happy, all while paying for my own insurance, retirements, vehicles, computers, bookkeeping, and advertising.

I'd just as soon they'd go bust.

Offline niobrara

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #13 on: May 29, 2013, 07:08:47 PM »
If the sell there warranty operations I don't understand how there going to handle the service unless they let whomever buys the warranty side , contract there techs thru Sears. I have a lot of friends that work there and I'm a little worried about them. And yes they are owned by a Hedge Fund . And I think we all know why they buy company's.

Offline AJ

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Re: Sears Loss/Wants To Sell Service Agreement Unit
« Reply #14 on: May 29, 2013, 08:34:23 PM »
I think it's just all talk. They will never sell it.

 

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