What happens to "unmarketable" real estate...aka the stores attached to a dead mall?

We all know what the modus operandi with the company and its system for closing stores: leased stores almost always close when the lease is up, owned stores are sold if it's located in a lucrative/viable market.

However there are hundreds of smaller Sears stores that are barely viable, if at all and are attached to a dead mall with no viability for a future merchant whatsoever. These stores also are in great need of remedial work, both structurally and aesthetically.

Why is Sears slow to close those stores and quick to get rid of good performing stores just because the lease is up, and if SHLD is really only in it for the real estate, wouldn't these "junk" stores offset any income realized from the few "gem" stores in viable markets?

Nobody will want to buy an old asbestos ridden store in disrepair, attached to a dead mall (if applicable) in a town of less than 20-50,000 people. There are tons of Sears--and for that matter, Kmarts--that are in this category.

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The last remaining Sears FLS is in a dead mall. It is Store 2855. The store is a Pension Guarantee store that is the only remaining SHC store in our area. All of the Kmarts have closed.

We have a few SHOS stores left. One Sears Outlet store and a handful of Sears Hometown stores left in our area but nothing else. Other than the one Sears FLS in the dead mall.

I would guess a lot of those "prime properties" are on the books of the Pension Guarantee Trust, since those folks are mostly political appointees who wouldn't know the business end of a calculator.

Most people think of dead and dying malls as graveyards. But, many cities are trying to take them over or repurpose them. They don't want to just let all that sales/property tax revenue evaporate. They use all type of financing and tax incentives to try and stimulate reinvestment. It obviously doesn't always work, but there are sometimes success stories. If any of these retail spaces are rehabilitated, Sears or Eddie will still own the property that the store sits on and can cash in.

They also have to maintain a minimum amount of inventory as collateral on a couple of loans

They keep unprofitable (which most are) stores that are SHC owned until Seritage can develope the other closed properties. Once Seritage remodels, rents to other business i.e. Dave and Busters, movie theaters etc. Then they will start to close down the lesser stores and either remodel them for another tenant, sell them to another buyer or bulldoze the whole thing and redevelope the property. They can't have too many stores to remodel at a time because of cash flow.

This is real estate 101.

A store in a dead mall probably isn't going to do enough business to even break even. Look at the former Woodville Mall store in Toledo which was an owned store. They finally just closed and very soon bulldozed it.

You answered your own question if the building is not leased and the property is worthless it will likely stay open to pay the taxes why close it if no one will by the property... you only hope its leased they say good bye

I do not think a single sears store makes money operating at 5-10% of its design capacity

Eddie blows my mind, many of his movies are unconventional, yet he always wins

Thread regarding Sears layoffs

What happens to "unmarketable" real estate...aka the stores attached to a dead mall?

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