Thread regarding Fry's Electronics layoffs

Employees : Keep Your Head Up

Hello Fry's employees,

I wanted to make a quick post to explain what may be going on with your stores. It's actually good news for you, so keep your head up:

Years ago, I used to work at a shopping mall. The mall closed. Sears continued to pay their lease - EVEN AFTER THE MALL CLOSED.

This might seem crazy - why would you pay the lease on a store that's not even open?

The reason that Sears did this, was because they wanted the landlord to 'buy out' their lease.

For instance, Sears in Denver had a lease that's 99 years long.

Yes, you read that right : 99 YEARS

I don't work for Fry's, but I am guessing that Fry's is in a similar situation. Basically they may be negotiating an exit from their lease.

If true, this can take YEARS. The Sears store in Denver took something like ten years for them to sort it out.

So keep coming to work, you never know how long this is going to to go. It could be quite a while.

| 1252 views | | 4 replies (last )
Post ID: @OP+13DWEjgm

4 replies (most recent on top)

I think the best advice for any employee is to look for another job if you need stable, full-time employment. Clearly, the company is failing and the writing is on the wall. There's no point in staying on a sinking ship.

Post ID: @9rgu+13DWEjgm

Its called overhead. It costs tons of money to lease some of the buildings, electricity bills, permit bills, land tax, fixing random things costs tens of thousands of dollars, paying labor (paying your workers), theft of items you bought is pure loss, paying upper management lots of money to sit at the home office and twiddle their thumbs, etc...,

Sales vs. overhead = huge losses when you barely have sales and each store is this way adding to this.

Post ID: @1bfi+13DWEjgm

I like your post, but I don't understand why you'd think that they're facing "huge losses."

Why would they be "facing huge losses?"

From everything that I can see, Fry's is unable to sell merchandise at a profit. Because they can't sell at a profit, they have stopped selling merchandise.

But the leases and the property that they own has value. Now they just have to find a buyer.

Which is why the stores are empty.

Post ID: @1wgr+13DWEjgm

A lot of the stores are owned, not leased. Prologis already bought whoever previously owned the land at the Anaheim store, and is actively looking into the headquarters at San Jose, asking the city about zoning changes. Land surveyors and building assessment 3rd party individuals have already visited my store, and my store is owned by Frys.

My guess is they'll sell out the land/building while its open vs. shutting down and risk losing value on abandoned and/or run-down buildings as much as they can before collapsing the business, which is losing a LOT of money the longer it stays open. I think theyll sell as much land as they can first before a mass shutdown so as to not risk everyone leaving their buildings empty and to avoid the aforementioned issue of shutting down before selling off.

Who knows how long it will keep going though and for whatever behind the scenes deals and timelines are going on. All I know is rich guys own the business and let it fail this way with horrible upper management, and they've no loyalty to the workers at all. They will do whatever is best for their personal profits. Its all about money pinching now and selling whatever to minimize the huge losses made while trying to sell out. Im not thinking they are going to drag it out, though, with how much they stand to lose vs. the profit of just selling off the lands and collapsing the money sink that they caused the stores to become.

Post ID: @lct+13DWEjgm

Post a reply