Sears prepares cash bid for Restorati...

Sears prepares cash bid for Restoration Hardware

There are 7 comments on the Chicago Tribune story from Nov 26, 2007, titled Sears prepares cash bid for Restoration Hardware. In it, Chicago Tribune reports that:

Sears Holding Corp. on Monday disclosed that it is prepared to offer $6.75 a share in a cash tender offer for Restoration Hardware Inc., which has already agreed to be taken private.

Join the discussion below, or Read more at Chicago Tribune.

Chicago Area

Roseland, NJ

#1 Nov 26, 2007
Didnt/Doesnt sears already own a hardware line. Sears hardware which has had several stores close?
Abbie

United States

#2 Nov 26, 2007
If this bid is accepted, Restoration Hardware stores will become as dumpy as Sears stores. Sears used to stand for quality, value and customer service but that was long ago. I love R.H. and would hate to see that happen
Shopper

United States

#3 Nov 26, 2007
Abbie wrote:
If this bid is accepted, Restoration Hardware stores will become as dumpy as Sears stores. Sears used to stand for quality, value and customer service but that was long ago. I love R.H. and would hate to see that happen
You get your money's worth. RH items are expensive.
Abbie

United States

#4 Nov 26, 2007
There is nothing wrong with expensive items, as long as the products are worth it. They are, at Restoration Hardware. You get extremely high quality and unique items that you will never find in a Walmart or Target...or Sears. I don't mind paying more when I know that I'm purchasing a unique, intriguing product that will last. When I want a waffle iron or sheet set, I'll go to Sears.
more

United States

#5 Nov 26, 2007
What ever "ED'Y" is going to touch he will distroy.. We distroyed Sears, K-Mart, etc.. Restoration Hardware do not do it!!! Be SMART!!!
BDD

Chicago, IL

#6 Nov 26, 2007
I hope that this doesn't go through. The stores will become dumps, the great/fun merchandise will go away and be replaced with taco makers, and the customer service will vanish.

Since: Apr 07

Woodridge, IL

#7 Nov 26, 2007
While analysts lampoon the idea of Sears using capital to purchase Restoration hardware,
this is not to boost Sears' bottom-line, nor a foray by Sears into new market segments.
I doubt Restoration Hardware's customer database would be worth much to Sears.

My guess is this provides two things for Sears, based on a view Lampert may have about the housing credit crunch:

1. Industry trends still show a post-9/11 philosophy of consumer "nesting,"that is, the
idea of making your home as pleasant and warm to the psyche as possible. A sort of
home-Xenophobia; heart is where the home is. You've all shopped in Restoration Hardware.
Nice, if not somewhat traditional...but those "affluent" customers love it. Restoration
Hardware could be poised for a rebound. Even small profits from a tiny subsidiary could
help Sears at this point.

2. Sears has purchased small companies/entities throughout their history with mixed results. To purchase this now while the current owner seeks new capital (thus a new
owner/parent), Lampert may be able to "flip" this business 5-7 years down the road if
Sears needs a quick cash infusion.

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