Posted by William Charles on October 15, 2018
Deals

Published on October 15th, 2018 | by William Charles

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Sears Filing For Chapter 11 Bankruptcy – Use Your Points ASAP!

Update 10/15/18: It’s official, Sears is filing for chapter 11 bankruptcy. 142 stores will be closed before years end. If you still have Sears/Kmart SYWR points – use them!

WSJ is reporting that Sears is preparing to fill bankruptcy based on sources familiar with the matter. For more information regarding that, I’d recommend reading the WSJ article. This post is really just to remind all readers with any Shop Your Way Rewards points to use them ASAP. Unfortunately some people undoubtedly made purchases that were offering points over a schedule of 12 months, if Sears does file for bankruptcy they seem set to lose out. After Toys R Us filed for bankruptcy gift card holders were given a month or so to use their gift cards, it’s unclear how SYWR points will be handled if bankruptcy is filed.

The other question we don’t have any clarity on is what will happen to Citi Sears cardholders, Citi & Sears signed a new co-branded deal worth $425 million in only May of this year.



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slut
slut

Use those SYWR points, make the bankruptcy happen faster!

Alan
Alan

How? It’s not awarded for another 11 months.

Mike
Mike

It’s not a surprise

Yoni
Yoni

I kinda of feel bad – mostly for the 100K + or so former Sears Employees that have a Pension from Sears. That said it is also part of the reason they are headed for bankruptcy eventually. ( I also wonder about Tesla future – and I like Tesla).

But – I still scratch my head on a lot of the Promo’s that seemed incredibly unsustainable – then again the 1-2x I popped in on lark over the past year – seemed like I was in a store from the 70’s or 80’s.

But I hear that that they are re-booting Circuit city all these years latter and that Toys/Babys R US may live on just not as a B&M.

slut
slut

That’s what this is about anyway. They have a fair amount of cash in the real estate amongst other things. Lampert just wants to shed himself of the pension.

JV
JV

The pension wont completely go away, the government agency “pension benefit guaranty corporation” will bear the burden which means us as tax payers.

diggs
diggs

Paywall bypassing link:
http://facebook.com/l.php?u=https://www.wsj.com/articles/sears-hires-advisers-to-prepare-bankruptcy-filing-1539136189

Click link above, then click the “Follow link” button thereafter. No Facebook account required.

Ren
Ren

Thanks Diggs!

sdsearch
sdsearch

Also, Sears talked to both WSJ and CNBC, and CNBC is not behind a paywall. (Though of course it’s not the same article.)

Yoni
Yoni

Sear’s largest secured creditor – and the one mostly likely to receive the lion share of liquidated assets – Sears Chief Executive Eddie Lampert holds about $2.1 Billion in secured debt.

Not sure where Pension Benefit Guaranty Corporation (Gov’t Agency) which backs the Sears retirees pensions facing a funding shortfall of $1.5 billion.

Rahul
Rahul

So i should use my sears gift card asap, today preferably……..

Dan
Dan

Use everything sears/kmart asap. GCs, points, coupons, all of it. The ship was already sinking, now it’s on fire.

NinjaX
NinjaX

holy shit! i thought i had more time. i mean everyone knew this was gonna happen but dammit! now my sears CC and GC are total junk.

NinjaX
NinjaX

really hope this is just a BK scare or restructuring w/ everything still business as usual until 2019. which is exactly what TRU did hoping the holidays would help. and it didnt. so we know where this is going.

Ren
Ren

The stock price dropped below $1 dollar on Sept 28 now at 57 cents. Don’t think it’s a scare it’s real this time.

Mike L
Mike L

Currently at 36 cents. Yikes!

Elmer
Elmer

They should do a 500-for-1 reverse split like Helios & Matheson did with MoviePass. That might buy Sears another 6 months at the rate they’re going! 🙂

JL
JL

Your Sears credit card is not junk. Well, the Sears name on the card is junk, but the credit card will still be good. Whatever bank backs that credit card (I think it’s Citi, right?) will keep you as a credit card customer.

NinjaX
NinjaX

bruh. why do u think people get this cc? to be a citibank customer? i got the card for the insane TYP offers. now its gonna auto PC into something retarded like the TRU cc did. so thats why its junk. will see wat happens tho.

Mike L
Mike L

Assuming Citi lets you PC, you could get the Double Cash or Costco card – assuming you don’t have them already. I plan to convert my Premier into a Double Cash when the AF comes due.

Elmer
Elmer

I’d bet NinjaX already has 2-3 DC cards.

nel
nel

Glad you’re saying this…Yes it is Citibank..It is my first credit card, is 31 years old!! Glad to know I may be able to keep.

Mickeymouse
Mickeymouse

Well considering Toys R Us is making a comeback I’d imagine Sears may do the same, investors want more back. Their current model is of course unsustainable, but the Brand name is internationally known and if revamped could get business back.

NinjaX
NinjaX

the brand coming back is not the same as the organization coming back. liquidation will kill many people tied to the current form of sears.

Mickeymouse
Mickeymouse

It’s true, I do not disagree. SYW points have always been a crapshoot for me and I definitely would not recommend anyone holding onto them longer than a week. The current model is not sustainable and has driven them into the ground. They opened too many stores, then to get money in their bank accounts they gave out insane 100% promotions in SYW points which are later redeemed for merchandise. I know they will have to lose the current Sears and make a brand comeback to survive.

That being said Sears and Kmart had a HUGE profit margin on their items I worked at sears from 2012-2016 in pricing. Several items they’d get from under a dollar and sell for up to $20. I’ve seen candles they sell at Kmart their price paid was $0.20 and sold for $4.99 a 25x profit margin. They definitely have longstanding connections with their vendors/distributors and a brand revamp isn’t out of the question. But they opened wayyyyyyyyyyyyyyy too many stores, did not price match, and their online stores are not what they should be in 2018 to compete in this market.

NinjaX
NinjaX

yea. but the biggest issue is their CEO. i dont understand how the SEC hasnt blasted lampert yet. hes the chairman, CEO, largest shareholder, biggest creditor, and owns all their key real estate via his personal hedge fund. wat da fuk.

Ferris
Ferris

He is a great CEO. They hired him to keep the ship afloat as long as possible and he invested tons more of his money. With other CEOS, Sears would’ve been gone years ago.

Mike L
Mike L

“With other CEOS, Sears would’ve been gone years ago.” As it probably should have been…

whodidntante
whodidntante

But then he would have missed out on that juicy hard to borrow short interest.

Elmer
Elmer

They didn’t hire Lampert. He bought the company years ago and made himself CEO. Initial articles suggested he was hoping to make it a holding company ala Berkshire-Hathaway and Buffett.

havai
havai

that’s a quaint perspective on things…. As I recall, Lampert was first buying Kmart on the cheap, then pulled a leveraged (massive debt) buy out of Sears… knowing full well that even if his scheme failed, his ESL holdings was going to make a killing on selling the real estate == and so he has over the past 15 years. Here in my town, Hoo’ville, the Kmart that had been open half a century, in a prime intersection, was left to rot — no investment in the building, the employees, etc. (and yet it still did a healthy business) They closed it two years ago, not due to its profitability (or not), but because far more could be made selling the property…

I’m more with those who see Lambert as the death of Sears, not its best-intentioned savior…. who in either case, failed miserably.

Elmer
Elmer

But Sears and Kmart have both been on a road to deadville for decades from all I have read and heard. They may have prime real estate locations, but none of them have had any significant upkeep or remodeling in decades (compared to Targets, Walmarts, Kohls, etc).

Mike L
Mike L

Same with BonTon. Some tech company bought all of their brands and data for $900k.

Elmer
Elmer

But my grandma isn’t getting any younger, and her generation is really the only one with true affinity for Sears. Most of us associate it with a tired, out-of-date mall store with inventory we’re not interested in. They’ve already sold off Craftsmen and Kenmore brands. Not much left of real value.

Mike L
Mike L

They sold off Craftsman to Stanley B&D, but they still own Kenmore – it’s just rolled into one of their subsidiaries.

Braden
Braden

There is also a good chance that any pending cashback through cashback sites might not be paid depending on when purchases were made. I saw this happen with RadioShack. Lost $100 in cashback from befrugal.

Brad

Exactly. Once they file, the affiliate program will shut down immediately and commissions won’t be paid to anyone, including the cashback site middlemen.

It’s possible some of those commissions were paid already and the cashback sites are just holding them to make sure there were no returns but this would give them a cover to not pay them if they wanted to just keep what they received.

Tim
Tim

Just cashed in my points to buy $250 in paper plates, paper towels, toilet paper and trash bags at Kmart.com. This was the greatest loyalty program ever! Especially with the credit card cash back if you were lucky enough to get 8-18 percent back in certain categories. Looks like people like me helped rape this program to death!

Andy
Andy

I’m going to go to the local kmart tonight and blow through the last ~$100or so of my points.
I’ve been shopping there a lot lately, getting the “Spend $50 and get $25 in points” deals.
Got BOGO $1 and BOGO 50% deals on top of that.
sorry to see it end, but had to get my little share!

Nick
Nick

LOL! This news comes of course after I applied for the Sears SYW card yesterday for my SO and I to take advantage of those insane offers! I spent an hour going back and forth trying to decide whether or not to waste a slot on the SYW card or continue going after the AA points like I’ve been doing all year. Oh well, I guess things can’t always go to plan in this hobby!

Eric C
Eric C

I do hope Sears is able to survive for at least 6 more months. I have some new appliances that I want to get and it seems to be costing a fortune at other retailers . Sears seems to provide reasonable prices and especially after the SYW points kickback and cashback portals. I hate to see more B&M retailers dying. I still enjoy being able to see the products in person rather than just going to an online only retailer.

Novacat05
Novacat05

Bankruptcy isn’t the same as liquidation though… airlines have filed bankruptcy countless number of times and bounced back.

Do I really expect Sears to bounce back though? No. This has been a long time coming, too many stores and they are just, well stuck in the 80s/90s. They were among the worst in store policies as well. Can’t say as I’m surprised.

CJ
CJ

Sears at my neighborhood has store-wide sales and no-return policy already.

Ann
Ann

Could you be more specific? No new store closure announcements have occurred yet, but dozens have already been known to be in progress (announced weeks or months ago).

escot
escot

Really, did you make that up? Or are you referring to a location already long announced as being liquidated? I made the trip last night to a Kmart in Waynesboro, Virginia… It was still surprisingly well-stocked and staffed (sic), and I easily used $70 or so in SYW points…. Oh sure, “store wide sales” — as per usual. (e.g., buy lots of stuff, get SYW points back — no thank you…. THAT game is over.)

But no indications of “final sale” or “no return” anywhere. Again, what store, where?

SCREW LAMPERT
SCREW LAMPERT

With MORAN eddie lampert at the helm, this was bound to happen. I wonder why it took so long. Terrible businessman

NinjaX
NinjaX

genius actually. able to single-handedly define conflict of interest and creating his own private shady wells fargo bank out of sears. and SEC aint doing shit.

alvinroast
alvinroast

Exactly. And once you get rid of those pesky pensioners there are plenty of assets left.

escot
escot

Rather interesting that amid your anonymous name calling, you misspell the very smear you invoke….

MORON. Ah, ain’t that America?

Ann
Ann

Anybody in the past 15 years (gee, I didn’t realize it had been around for that long, I was going to guess 10 years) misspelling ‘moron’ as ‘moran’ might be doing so intentionally as an homage to the famous photo of a poorly-educated man holding a sign that said ‘morans’ on it. https://knowyourmeme.com/memes/get-a-brain-morans I don’t know about this particular person.

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