The catastrophe that is Sears Holdings Corp. (SHLD is likely nearing its next ugly round of developments.
How could one not draw such a conclusion? Sears Canada SRSC (as TheStreet's Michelle Lodge reports below) has effectively died. Although these are two separate companies, Sears Canada has so much in common with Sears U.S. it's almost laughable. These are businesses that have badly neglected their customers, forgotten that stores need to be invested in and are running out of ways to raise cash.
Meanwhile, Sears U.S. is reportedly closing another 20 stores on top of the 245 it already planned to shutter. This is yet another sign that Sears' business model no longer works, and efforts to save costs are in no way deep enough. The market will likely take this news as a negative for Sears' short-term outlook.
Be prepared for the next shoe to drop, and soon.
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Sears shares rose 5% to $6.75 on Friday morning.
What's Hot On TheStreet:
Well, OK then, Jeff Immelt: General Electric's (GE - Get Report) outgoing CEO Jeff Immelt had some choice things to say at an event in NYC on Thursday night, TheStreet's Kinsey Grant reports. First, Immelt revealed a possibly fatal management mistake Kroger's (KR - Get Report) CEO might have made about Amazon (AMZN - Get Report) who, as we all know, just inked a $13.7 billion deal for organic grocer Whole Foods (WFM . Immelt then took a jab at Hillary Clinton and Barack Obama for not visiting factories in their push to lift manufacturing wages. Talk about a well-paid boss going down swinging.
Why Sears Canada is dying: Sears Canada (SRSC has one foot in the grave just like its ailing U.S. friend Sears Holdings Corp. (SHLD . Unfortunately for Sears Canada, it's that friend across the boarder that has played a large role in its demise, TheStreet's Michelle Lodge reports. Sears has sucked badly needed cash away from Sears Canada through the years, leaving it unable to upgrade stores and do other things to compete effectively in the always challenging Canadian retail market.
Be ready for an intense trading session on Friday: As always, some great insight into the trading day from TheStreet's markets contributor Stephen Guilfoyle.
He pointed this out today:
"Today will certainly be one of the heaviest trading days, if not the heaviest of the entire year. An estimated $3.8 trillion in assets track the Russell indices; 43 names will head from the Russell 1000 into the 2000; 31 companies will go the other way. Just within the 2000, there will be 186 additions and 107 deletions. There will also be 10 additions to the 1000. Between $1.5 billion and $1.8 billion are expected to flow into both the energy and tech sectors, while financials should see outflows of more than $2.6 billion."
And you thought this was going to be a typical summer Friday.
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