NONE of the stores are safe. My Sears store was a top 50 store. Closed this month. And no, it wasn’t a Seritage property.
Can this be true? If it is, then what is the point behind this move? What in the world would prompt them to close one of the top earning stores? Makes no sense.
Our store was a top store in our district that was leased to SHC. WIth two years left on the lease we closed and they took the store and made it into three stores--two retail and a restaurant. SHC was only paying a few dollars per square foot to lease the property so they closed the SHC store and sub-let to the three new stores for three times their rent. That is why no stores are safe. Unless your store is making so much money that SHC cannot get more from renting or sub-letting to another store, then your store can close.
I think this is the idea behind taking a three story Sears in a mall and making it one floor and renting the other floors out to Dave and Busters or a movie chain.
@cwt- I’m not sure, as I left years ago. I still had a lot of friends there which is why I know the little that I do know. I can tell you that the rent Sears paid for that particular store was unusually low (something like 50 cents per square foot). We always had a huge profit. I have heard that a developer bought the property, and based on the location I would bet it’s going to be leveled and replaced with a hotel. I also know there was still a full year left on the lease. That’s all I got.
@SRUYVwe-inge Good points. If Sears does eventually file for bankruptcy there will be absolutely no severance. And unless you are in a state like California you won't even be assured of your final wages. Be careful if you're waiting around till the end.
Rankings of stores is a joke. Our store was ranked as a top 25 store on the official company rankings. At the time we were down 25% to last year's sales. We were also considered profitable. No freaking way.
@ane: Current associates awaiting or expecting a severance will be in for disappointment as SHC increases the required criteria for consideration. Unemployment benefit is another cause for concern.
I still think its to infuse some quick cash to pay down some of the big debt like we always hear paying vendors and the whole retirement plans etc.
Course if the land/property is worth a good amount of money and their is a buyer it can be a good sale right now. Have to remember Sears is in need of cash to slow down the bleeding.
Although in a personal level I would close the most unprintable stores first than the ones that are still making some good $$$.
My guess is the location of your top 50 store is what made it close.
Someone must have wanted the space & even SHC isn't stupid enough to let a market rate tenant with good long term prospects get away.
Are you comfortable saying what your store made? Annually or even on a good day?
No one is really buying into the bull anymore...every hanger on has their reason...just milk the cow while it's still mooing and hope your store closes before they go belly up so you can get severance pay.
If the store makes money that is a selling point to the new tenant or buyer. "Just think the money your business could make here if Sears can make money!!"
The more successful and profitable a store is the more valuable it is and the more money it will bring when sold. It's all about the money. It makes no difference if the store is a Seritage property or not. Sears continues to be in a systematic liquidation.