I’m wondering how many SHO employees are left. I know some people have already jumped ship. It seems more and more Sears Hometown owners are not renewing their contracts or SHO is forcing them out. What is to become of SHO?
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Franchisees are going bankrupt when SHOS yanks the franchise agreement because they can’t provide merch. With the problems SHC is having, their main channel for merch is drastically shrinking. Outlets are SHOS owned and are going to get most of the merch. Whatever is left goes to the franchisees, in this case there isn’t nearly enough left to supply all of them. However SHOS goes about picking which franchises to terminate, that’s what is happening. Wouldn’t surprise me to find that a bunch of these franchisees are also extremely over-leveraged, and can’t get anymore loans. When SHOS cuts off the merch and pulls the agreement that’s the end. SHOS is still intact and in no danger of BK for the time being. If they continue to yank franchises they’re going to run out of franchisees and have to shut down the franchise segment of the business, but the core Outlet BU is still keeping the business somewhat solvent.
@2fip no, but plenty of franchisees have gone bankrupt. Are you an id--t?
No, apparently you aren’t. SHOS franchisees are bring left high and dry when the franchise agreement is pulled, usually due to lack of merch. However, SHOS itself has not had any part of the business go bankrupt. When your local McD’s or BK closes, you don’t say that the parent corp “had a bankruptcy.”
@2qsr not one for keeping up with Sears news, eh?
What SHOS bankruptcies would that be, pray tell? SHOS is refusing to renew franchises, probably because they can’t supply merch to support those stores and don’t want to deal with the end result of that. They make more money in the non-franchised Outlets than they do on the franchised Hometown stores. 100% of the time, they’re going to guarantee that the Outlets have enough merch on hand, even at the cost of screwing the Hometown stores.
Where are the shills telling us how Transform is going to supply them with all the appliances they need? Or did they get laid off among all the DM cuts and SHOS bankruptcies this week?
Goes lease an appliance.try and keep them open longer than another quarter. Got deals almost as good as aarons.
If SHLD or the remains thereof cease operating, then SHOS will be forced to cease operations as well. Something like 70% of their merch comes from SHLD, either direct sales or shared contracts. If SHLD goes away. Then SHOS will loose 70% of their merch with no way to replace it.
It’s all the same company, it’s all going to sh--. Get out.