Doesn’t sound good to me. Going to happen in January 2018.
The leased store (in mall) is on the list of stores that were released from the ring fencing so eventually could be sold and proceeds go to the pension fund. The store they are moving to is a stand alone owned property.
3/16 a deal was made to protect these properties but was recently amended with the PGBC that oversees pensions and released from the ring fencing protection.
What’s your thoughts?
I talked to another person from another sears store who said landsend is moving out of ALL sears stores
Perhaps they are selling the lease. It didnt see anything in the pbgc article about selling leases. I was aware that Sears does own some long term leases at rates well below market value. The pbgc statement led me to think they were selling 140 properties, not leases. Maybe they were just being vague. I tgink the press release is on Sears corporate web page.
You can sell a lease. Sometimes they are quite valuable, if for example they are at way below current market rates. You aren't selling the property, you are selling the rights to lease the property. As a simple example if you are leasing for $1/sqft/year and going rate is $5/sqft/year the landlord or some other investor could buy the lease because there's a potential upside of $4/sqft/year.
@kdv my store is a leased store and is on the original list
@kdv the 2017 list of 140 stores hasn’t been published yet most of the articles refer back to the 2016 deal with sears and pbgc
You can also google the list of
Remic certificates to view list from 2016
the Amended deal announced 11/8/2017 will close in about 3 months approx Feb 2018
It’s all about funding the pension plan
I believe now that the PBGC has a Lein on these 140 properties because the pension fund is not 85 % funded
There is a lot of debt coming due in 2018!!
Oh the tangled web Eddie weaves only to deceive
@kdv Thread about the PBGC REMIC deal: https://www.thelayoff.com/t/Q9iLxcO
If it is a leased store then it is not owned by Sears. The 140 stores that were recently released by the pbgc are stores that are still owned. They will be sold and then closed or leased back until likely closing at a later date. If th store you are referring to is leased then Sears may be preparing to close it. Seritage probably owns it and has new tenants willing to pay alot more for that space. I have not seen a list of the 140 that Sears plans to sell.