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Sears has been in existence for 132 years and is one of the most iconic companies in the United States. But its history does not prevent the commercial chain from declaring bankruptcy this week.
After the announcement on Monday, many concluded that the iconic store was simply a victim of the new technological era.
He could not compete with Amazon ", summarize several badysts, reacting to information.
However, over time, more and more voices are emerging to ensure that Sears' problems – now he will continue to function in a limited way – they have nothing to do with his numerical skill but with his leadership.
Specifically, the darts are directed against the l? former director, president and main shareholder of Sears Holdings, Eddie Lampert.
Lampert, one of the richest in the United States, manages the ESL Investments investment fund and his wealth rises to 1,100 Million US Dollars, According to Forbes Magazine.
"He served as Executive Director of Slogans superstar giant Sears Holdings (Sears, Kmart, Kenmore) in 2013 in the hope of changing course, but failed lamentably nt ", Forbes stubbornly holds in a relative profile to the investor.
AN ODYSSEY OF 15 YEARS
In fact, the bonds between Lampert and Sears began long before he became the group's director five years ago (he resigned Monday from this post but remains President of Sears Holdings).
The initial connection with the group dates back to 2004. The date on which its investment fund purchased a portion of Sears Holding.
A year before the investor had also bought Kmart bonds and acquired a controlling position on it.
And his first success at Kmart "captivated Wall Street," says Vanity Fair reporter William D. Cohan, one of the few to have successfully interviewed the billionaire.
in 2003. Kmart's operating profits were around US $ 400 million. And the next year they went up to $ 900 million.
And, according to Cohan, this success made Lampert fall into pride .
"He thought he knew something about retail when in fact I knew financial engineering," Cohan wrote this week in an editorial published by The New York Times.
Cohan and other observers believe that one of the biggest mistakes made by the investor was merging Kmart with Sears in 2005 .
Lampert describes it as a "transformation", but decided not to invest the funds needed to renovate the famous stores.
Instead, he had committed what his critics claimed to be ] his second big mistake : to focus on the development and promotion of the Sears website and on-line sales.
But "Amazon devoured Sears' breakfast (and their breakfast and dinner)," wrote Cohen. 19659020] " Sears succumbed to the arrogance of Lampert ," the journalist concluded in his pithy article.
RAIN OF CRITICISMS
Cohan is not the only one to criticize and blame the boss of Sears for the debacle of the company.
"The skills of Lampert as a retailer are … well, " limited "is an educated way to say ," writes Helen Olen in the Washington Post.
"He often dictated politics (business) to In another opinion note, he said by videoconference from one of their several homes." 19659025 "Under his direction, Sears He did not invest in stores, but rather on non-traditional and often dubious solutions, "he agreed with Cohan. 19659026] The financial reporter also blamed the " conflict of interest " many of Lampert's decisions.
Its investment fund, ESL Investments, lent millions to Sears and also bought out debt at the time, which could pay off now that Sears went bankrupt.
ESL also purchased many of the chain's most profitable transactions such as the Land & End's catalog clothing line and others, and it also indirectly acquired a portion of Sears Real Estate, by charging rent to the company for using buildings that belonged to it.
"Many badysts believe that the fall of Sears is a warning about reckless lending and the inability to adapt, especially before e-commerce and rivals like Amazon." Clearly, there is a lot of truth about it, "writes Jeff Spross in The Week magazine.
"But there is another part of history that deserves the same attention: how an investment fund on Wall Street was disarming and selling a portion of Sears. "
DEFENSE
In a speech delivered in front of a thousand Sears employees on Tuesday, Lampert acknowledged that he had not achieved the goal that he had. Was fixed.
"When Sears and Kmart merged in 2005 I envisioned a society that would be different and relevant to the 21st century .These were two iconic companies that were in business. were lost. "
" As we all know, we have not taken advantage of this opportunity, as I would have liked. "Instead of growth and investment, we have faced with reductions and restructuring, "he said.
" There were mistakes along the way, for which I took responsibility . These failures affect me in many ways, far more than any success I've had, "said the billionaire.
The company announced in a statement its intention to continue its business with profitable stores and businesses. Sears and Kmart websites
However, he announced that he would close 142 of its nearly 700 stores by the end of the year and would seek to sell another 400, which would have a huge impact on the remaining 68,000 employees.
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