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J. Clarke[_4_] J. Clarke[_4_] is offline
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Default Sears, Craftsman, Stanley, and China

In article , says...

On 5/21/2017 7:07 AM, J. Clarke wrote:

I came upon a bit of information today that sheds a good bit of light on
the Sears and Craftsman situation.

The whole article is about a lawsuit between Sears and "One World
Technologies", which is apparently a supplier of Craftsman tools. This
made no sense to me since I thought that Stanley now owned Craftsman and
any purchases of Craftsman tools would be from Stanley from now on. Then I
got to this paragraph:

"Sears sold its Craftsman tool brand to Stanley Black & Decker earlier this
year in a deal valued at $900 million. The deal gives Sears the right to
sell Craftsman products made by its existing suppliers royalty-free for 15
years."

Note--"by its existing suppliers".

So it looks like the Stanley deal doesn't actually change anything for
Sears except that they got a cash influx and have to start paying a royalty
on the brand 15 years down the road. If they can continue to use "their
existing suppliers" then they can continue to use their Chinese wrench
manufacturer no matter what Stanley decides to do.

So much for the hope that Stanley will bring Craftsman back onshore. Even
if they do how will they distinguish their stuff from what Sears sells?

Anyway, the whole article is at
http://www.chicagotribune.com/business/ct-
sears-craftsman-one-world-lawsuit-0516-biz-20170515-story.html.


They have three options.


Who is "they"? You seem to be conflating Stanley with Sears.

Keep buying from existing suppliers and make a profit on the resale.
After 15 years phase out the existing suppliers and take over manufacturing
Phase out the Craftsman brand. That can be done at any time.

It is not uncommon to buy a competitor and shut them down.