Are Outlet stores affected? Haven't really noticed outlets on previous closing list or are they already detached from Sears Holdings?
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SHOS is not on the Legacy Sears POS System. They run their own systems now.
HR/Payroll/POS-IT is handed now by SHOS own systems.
Outlet stores rely on Sears mainly for discontinued/slightly damaged products though, so if Sears entirely goes kaupt, the outlets are not going to be able to easily acquire products (same with the franchised 'Hometown' stores.
Want to add: SHOS (Hometown) relies on Sears for 100% of their transaction processing. They will obviously need to do something about that. So they will either be hiring in IT or looking for a 3rd party solutions very soon.
mea culpa. I meant Sears sold approximately $ 1 billion dollars in gross sales to SHOS annually; not $1 million. (But it has been declining),
Indirectly; yes. They are detached from Sears Holdings; and have their own ticker: SHOS.
Sears sold approximately $ 1 million dollars of merchandise (gross sales) to SHOS annually. Much of that was likely contractual; so soon SHOS may be free of those contracts; which would be in their favor; allowing them to get 100% of goods through their own connections; which would; in theory; lead to higher profit margins for SHOS.
Sears may have loaned funds to SHOS. Those would remain payable in a Sears bankruptcy.
SHOS may have goods not fully paid for that are owned by Sears; and would remain owned by sears until fully paid for; or released by bankruptcy judge.
In regular quarterly and annual filings Sears notes that fraudulent conveyance charges can be raised as a valid concern should a bankruptcy arise. This conveyance can and will be challenged; but the farther out the conveyance occurred the less likely a challenge would succeed.
Outlets are part of a separate company spun off years ago - SHOS - Sears Hometown & Outlet Stores.