I’ve said it before. I believe Sears Holdings is toast as we know it.  The writing has been on the wall and is still being written. Eddie Lampert’s change to self contained profit centers is sleight of hand simply to categorize value and manage assets in preparation for a gradual sell off. 

What value does Sears really have now other than intellectual property/brand name?  We will not even talk about Kmart.  It has sunk below completely irrelevant.  It is not that it is not savable.  It is more simplistic than that.  Eddie Lampert will never ever ever invest the capital in Kmart that is needed to save it and he should not. 

It’s like that 100 year old deteriorating home in an up and coming neighborhood.  If it has not been kept up over the years, it eventually becomes so broken down than it would cost more to renovate than you could ever re-coup in your investment.  It is a “tear-down”.  That is what Kmart is… a tear-down.  The big difference is that a tear downs generally maintain its good real-estate value.   That’s why you tear it down.  Whatever you re-build re-coups the investment. The value of Kmart real-estate has been decimated.  The precise thing that made Eddie Lampert look like a genius in is now an albatross around his neck.  A bunch of junk real estate that nobody wants.  Unfortunately, the biggest Albatross around the neck of Sears is Eddie himself.

 Kmart does have some very good talent at the top. I have met some of them. Very smart guys. Unfortunately things have gotten to the point where nothing but an “immaculate resurrection” will do the trick and as good as these guys may be on paper, none of them walk on water.

So why should Wal-Mart purchase Sears.   Sears has some kick ass brand names that pretty much defines its value, particularly in the hardware/tool department.  Wal-Mart could do wonders with these brands.   Of course there is also the issue of whether these brands would want Wal-Mart who takes a draconian approach to their suppliers.

Eddie should do it now while   there is still intrinsic value to the operation.