Thread regarding Sears layoffs

@4dib so basically these properties may be sold but the new owner may still allow sears to lease the buildings?? I wonder how easy it will be for some of these stores to still stay in business in dead malls?

@3amz No, this has nothing to do with any stores closing, see the previous reply @1lcc. The real estate is being sold to unknown buyers (presumably Seritage), with the profits from that sale going to fund the pension instead of into Sears Corp's operating budget. That buyer will want a tenant to keep paying rent, so they will keep Sears in that property until either Sears decides they can't afford to keep paying that store's rent, or Seritage gets a more lucrative tenant lined up - which is unlikely for many of these properties.

At this point everything on here other than the locations are guesses of what could happen. I really hope no one takes any of this as fact.

So are we saying that if your store is a REMIC it’s going to be closed if not already?

My store is one of the REMIC properties... it's doing moderately well, but is in a mall that lost its Macy's and a large furniture store within the past year, so that oversupply of already-vacant and nicer-looking mall anchor real estate will hopefully make the space still occupied by this Sears less attractive to other tenants, so that Sears can afford to keep leasing the property from the new owner for longer.

For those trying to put positive spin

Wall Street Journal:

"While the ongoing initiatives should help alleviate some pressure going forward, we believe these are only temporary fixes and Sears' long-term success remains in doubt," he added. "Sears is still in violation of the agreement with the PBGC, and will have to continue to sell assets in coordination with the PBGC's approval."

The PBGC is a federal oversight group that guarantees individual pensions should a company go bankrupt. PBGC has the right to involuntarily terminate Sears's pension if the company fails to put up enough collateral.

Seritage can buy them and lease them back to Sears while they look for real buyers. No need to remodel until a real tenant comes along.

SRG is only capable of buying a few of those stores. It takes a tremendous amount of capital and manpower to manage the renovation of a store. They don't have enough capital or people to do more than a handful, say 30-40. SHLD will need to sell these stores since they only have a few months to pay the pension fund, and they really don't have that kind of cash or access to it anywhere else. Those stores will be sold. It will be fascinating to see what they're actually going to get for them.

And to answer all the ones wondering about the QMT servicing the profitable stores in active malls located in thriving areas that were sold off in this round ....,,,,the answer is yes, they were company owned , reroofed, newer Hvac, asbestos abated units . The one unit left would make money if it was selling brown bagged dirt 2 hours a day the mall is so busy.

“The action stems from Sears Holdings entering into a five-year pension plan protection and forbearance agreement with the Pension Benefit Guaranty Corporation announced last year.”

So does that mean SHLD has 5 years to sell the 140 properties or obtain loans on them?

Was the 2016 deal amended to include additional stores?

What happens to a leased store? How does Eddie sell a lease?

@Q9iLxcO-1syv They also cut revenue though, so whatever they keep skimming off the top is not going to matter in the long run.

@syv who in your life is good, good, good. What a strange four letter word.

According to several articles the properties in question are not prime real-estate. Many are closed locations that have been on the market for many years. This quote is from one article.

"Also, as of January 30, 2016, the net book value of the securitized real estate assets was approximately $600 million. The list contains 127 properties, none of which are located in California."

Since property is only worth what the market is willing to pay for it, the $600 million valuation could be very speculative. Accepting cold hard cash of $407 million could be a sound move. It would be naïve to believe that the Pension Benefit Guaranty Corp hasn't done its due diligence in this matter.

There is a ton of mis-reporting suggesting that Sears is getting $407M for the 140 properties. In actuality, they are paying $407M to the pension to unlock the 140 properties, which are worth multiples of that. Not to mention, this $407M payment eliminates the need for Sears to make contributions to the pension for the next two years, save for a $20M payment in Q2 2018.

In theory they could sell properties to Seritage, get the money and keep the stores open or partially or fully develop them. Or the properties could be used for collateral for more loans. Either way if Sears Holdings does eventually demise the primary beneficiary (you know who) gets the assets.

$400 million for 140 properties seems kind of low. I would guess the properties would be acquired by Sertitage Growth Properties. If Eddie's Seritage group can get the properties for this price it seems like a good deal for them. I am not sure if these properties were on the open market or if this is an arraigned sale to Seritage. Can't wait to hear if Eddie is selling these to himself (Seritage). The stores could remain open and just pay rent to the new owner like some of the other 235 properties that were sold to Seritage.

If you read the notice, they cut expenditures by 1.25 Billion a year, that’s good.

Also these stores are already sold. Note they talk about closing, closing on the sale of the property. This is a good thing and a good report. Read the whole report.

It doesn't mean the stores are closing.

Does anyone know How soon these properties would be put up for sale? Would they announce these stores closing within months or could this take years?

If the Sears FLS is in a corporately owned building.

Is the QMT responsible for all repairs like, HVAC,Electrical, Plumbing, Roof Leaks and other issues?

Cambridge Mass Sears was sold about a month ago for 55 million.

Here is the seeking alpha article I was referring to.

https://www.google.com/amp/s/seekingalpha.com/amp/article/3965220-red-flags-sears-pensioners

You need to copy and paste the link to read it.

Ailing department-store chain Sears Holdings reached a deal that will allow it to sell up to 140 additional properties as it faces mounting losses and declining sales, likely setting the stage for another round of closures.

Sears said Wednesday that it had reached a deal with a U.S. government pension board to regain the right to sell the 140 locations that had previously been shielded from such a plan.

The company is expected to use all of the proceeds from the sales or financing deals — estimated at $407 million — to fund a pension plan that still supports about 100,000 beneficiaries.

At least three of these were mine as a QMT . In busy malls that were absolute money makers. Only leaves one "cherry" that is probably still being managed by the same SGM . The rest of the scores of stores are history.

Westland Mich store is a lease

I believe the Novi Mich is leased too

How do you sell a leased store?

Wonder why the livonia mich store is not on list. I heard that’s an owned store.

Not all of these are in dead malls. Mid rivers mo is an A store. Anyone thinking loosing 17% of same store sales and burning 535 million in cash after selling over 200 million in assets in 90 days is a good thing they need to get help

I would bet, a store owned is more valuable to creditors.

So the stores that are listed in the above comment. are these the properties that are going to be sold to fund the pension payments coming up next year. My store is one of them and the building is owned not leased.

@jnb I did see that Kmart will be down to 437 stores after the current closing round finishes up. It's hard to believe that Kmart alone had over 2,000 stores before their bankruptcy in 2002 and was over 1,000 as recent as 2012 (if not more recent).

For Sears, I think they'll be around 575 after this current closing round.

The only reason their losses are down is from the $$ they are not spending on payroll and purchasing for the stores that have closed.

So if more closed last week and more selling how many Sears and Kmart stores are left overall?

@bbc, you are a sad sad fool to believe ‘the Q3 report was good, so good’. You are very uneducated to use a four letter word. What is next...Love, Hate, Fart, S**t, Damn... ten letters have more meaning, BANKRUPTCY.

More importantly, they're being sold to a pension manager, meaning you and I are buying them with our retirement. That's how Eddie is cashing out, by selling toxic, worthless assets to the masses.

And you probably think the pension manager is dumb right?

Nope, smart. All by design.

When the edifice collapses, guys like Eddie never take the hit, always put off to the average Joe.

That's 140 stores that won't be selling Sears merchandise soon. Spring Hill mall is the sears located closest to HE.

@bbc, you really think Q3 results are good? 17% decline in same-store Sears sales is NOT good. And that's on top of the decline in preceding quarters.

I know Sears 2855 is located in a dead mall where I live.

It has NO, Optical,Miracle Ear or Portrit Studio. They do not have those areas curtained off.

Yes these are Sears Stores.

Mostly 95% located in dead malls/B&C grade malls. In less desirable locations.

The Q3 report was good, very good. All the proceeds from the sale of these stores is going to the pension which will be fully funded for two years (with SHLD only having to make one $20 Mil payment next year).

This pretty well shoots a hole in the whole Eddie Bankruptcy theory. If he just wanted to BK these why sell them to prop up the pension....

2819 Airport Way Fairbanks AK [**]

1141 14200 E. Alameda Avenue Aurora CO [**]

1221 1650 Briargate Blvd Colorado Spgs CO [**]

1271 8501 W Bowles Ave Littleton CO [**]

1831 Sears Grand Thornton Thornton CO [**]

1035 3450B Wrightsboro Rd Augusta GA [**]

1095 6580 Douglas Blvd Douglasville GA [**]

1155 400 Ernest W Barrett Pkwy Nw Kennesaw GA [**]

1565 1300 Southlake Mall Morrow GA [**]

1685 Gwinnett Place Mall Duluth GA [**]

2115 2215 Memorial Dr Ste 400 Waycross GA [**]

2845 3700 Atlanta Hwy Ste 270 Athens GA [**]

8745 4650 Hugh Howell Rd Tucker GA [**]

1172 Stratford Sq Mall Bloomingdale IL [**]

1321 2200 W War Memorial Dr Ste 998 Peoria IL [**]

1780 104 White Oaks Mall Springfield IL [**]

1820 Spring Hill Mall West Dundee IL [**]

1840 6501 95Th St Chicago Ridge IL [**]

2121 1607 36Th St Peru IL [**]

2250 105 Northwest Highway Crystal Lake IL [**]

1600 6020 E 82Nd St Ste 200 Indianapolis IN [**]

1650 Southlake Mall Merrillville IN [**]

1680 10202 E Washington St Indianapolis IN [**]

1800 6501 Grape Rd Mishawaka IN [**]

2290 Marquette S/C Michigan City IN [**]

1012 4000 Merle Hay Rd Des Moines IA [**]

2422 Southern Hills Mall Sioux City IA [**]

2760 320 W Kimberly Rd Davenport IA [**]

1642 1781 Sw Wanamaker Road Topeka KS [**]

1730 3000 Mall Rd Florence KY [**]

1790 4807 Outer Loop Louisville KY [**]

1077 3601 Southern Ave Shreveport LA [**]

1086 9001 Cortana Mall Baton Rouge LA [**]

1116 4800 Millhaven Rd Monroe LA [**]

1147 6501 Blubonnet Blvd Baton Rouge LA [**]

1226 Sears Clearview Metairie LA [**]

1286 New Orleans Oakwood S/C Gretna LA [**]

2087 Alexandria Mall S C Alexandria LA [**]

2677 Pierre Bossier Mall Bossier City LA [**]

1033 Emerald Sq Mall N Attleboro MA [**]

1104 521 Donald Lynch Blvd Marlborough MA [**]

1223 200 Westgate Dr Brockton MA [**]

1343 100 Cambridgeside Pl Cambridge MA [**]

2934 Silver City Galleria Taunton MA [**]

1074 11170 Mall Circle Waldorf MD [**]

1424 7103 Democracy Blvd. Bethesda MD [**]

1754 701 Russell Ave Gaithersburg MD [**]

1854 8200 Perry Hall Baltimore MD [**]

1011 3622 Rivertown Pkwy Sw Grandville MI [**]

1092 35000 Warren Rd Westland MI [**]

1110 6780 S Westnedge Ave Portage MI [**]

1192 5500 Harvey St Muskegon MI [**]

1700 18900 Michigan Ave Ste 1001 Dearborn MI [**]

1720 14100 Lakeside Cir Sterling Hts MI [**]

1760 27600 Novi Road Novi MI [**]

2040 5575 B Drive N Battle Creek MI [**]

2180 1212 S Airport Rd W Traverse City MI [**]

1166 1740 Bonita Lakes Cir Meridian MS [**]

1306 1000 Turtle Creek Dr Hattiesburg MS [**]

1042 101 N Rangeline Rd Joplin MO [**]

1171 2825 S Glenstone Ave, Suite 500 Springfield MO [**]

1182 #3 Mid Rivers Mall Dr St Peters MO [**]

1222 250 S County Center Way Saint Louis MO [**]

1690 #1 Chesterfield Mall Chesterfield MO [**]

1822 Sears Grand Cape Girardeau Cpe Girardeau MO [**]

1314 51 Us Hwy #1 New Brunswick NJ [**]

1554 4409 Black Horse Pike Mays Landing NJ [**]

1614 S Orange Ave & Walnut St Livingston NJ [**]

1734 300 Quaker Bridge Mall Lawrenceville NJ [**]

1764 Route 90 & Mt. Hope Avenue Rockaway NJ [**]

1874 Rr 541 Box I-295 Burlington NJ [**]

1717 10000 Coors Bypass Nw Albuquerque NM [**]

2207 1000 S Main St Roswell NM [**]

1165 Carolina Mall Concord NC [**]

1375 3320 Silas Creek Pkwy Winston Salem NC [**]

1405 Cross Creek Mall Fayetteville NC [**]

1455 Independence Mall Wilmington NC [**]

1475 6910 Fayetteville Rd Ste 400 Durham NC [**]

1605 7330 Old Wake Forest Rd Raleigh NC [**]

1805 4601 Glenwood Ave Unit 1 Raleigh NC [**]

2175 240 Carolina East Mall Greenville NC [**]

2515 Valley Hills Mall Hickory NC [**]

1712 2800 S Columbia Rd Grand Forks ND [**]

1051 17271 Southpark Ctr Strongsville OH [**]

1120 5053 Tuttle Crossing Blvd Columbus OH [**]

1210 1400 Polaris Parkway Columbus OH [**]

1710 5000 Great Northern Mall North Olmsted OH [**]

1810 Eastgate Mall Cincinnati OH [**]

2010 Richland Mall S/C Mansfield OH [**]

2390 Upper Vly Mall S/C Springfield OH [**]

1545 205 W Blackstock Rd Ste C Spartanburg SC [**]

1595 700 Haywood Rd Greenville SC [**]

2305 3101 N Main St Anderson SC [**]

2855 Citadel Mall Charleston SC [**]

1027 750 Sunland Park Dr El Paso TX [**]

1076 2401 S Stemmons Fwy Ste 5000 Lewisville TX [**]

1176 999 Pasadena Blvd Pasadena TX [**]

1187 Town East Mall Mesquite TX [**]

1217 1305 Airline Rd Corpus Chrsti TX [**]

1267 1800 Green Oaks Rd Fort Worth TX [**]

1297 1101 Melbourne Rd Ste 7000 Hurst TX [**]

1307 4310 Buffalo Gap Rd Abilene TX [**]

1317 8401 Gateway Blvd W El Paso TX [**]

1327 1000 San Jacinto Mall Baytown TX [**]

1337 851 N Central Expwy Plano TX [**]

1367 6001 W Waco Dr Waco TX [**]

1377 7925 Fm 1960 Rd W Houston TX [**]

1387 7701 1-40 W Ste 400 Amarillo TX [**]

1407 6461 Eastex Fwy Beaumont TX [**]

1417 20131 Highway 59 N Humble TX [**]

1427 6909 N Loop 1604 E San Antonio TX [**]

1437 Parks Mall Arlington TX [**]

1447 4900 S Hulen Street Fort Worth TX [**]

1487 11200 Lakeline Mall Dr Cedar Park TX [**]

2197 10000 Emmett F Lowry Expy Texas City TX [**]

2247 Mall Del Norte Laredo TX [**]

2497 Sunrise Mall Brownsville TX [**]

2547 Post Oak Mall College Station TX [**]

2557 Longview Texas Mall Longview TX [**]

2587 Golden Triangle Mall Denton TX [**]

1029 4700 N Division St Spokane WA [**]

1038 14720 E Indiana Ave Spokane WA [**]

1099 1701 S 320Th St Federal Way WA [**]

1139 301 Southcenter Mall Tukwila WA [**]

2029 9 E Valley Mall Blvd Union Gap WA [**]

2219 S Sound Ctr Lacey WA [**]

2309 10315 Silverdale Way Nw Silverdale WA [**]

I believe these are the original REMIC properties that were shielded specifically for the pension fund (not reit properties). I know my store is a REMIC property. These properties were shielded from being sold but the pension board gave Sears the right to sell today. You can find the list online google REMIC properties or go on Sears holdings and look under securitization transactions you have to dig but it is there. In michigan the stores are Westland, portage, Dearborn, Sterling Heights, novi, Battle Creek, Granville, Muskegon, and traverse city. A lot of stores on the whole list have closed since the agreement was originally made.

I’d guess that since Sears declined to comment, it’s stores that are still open.