The Bankruptcy Court has given the green light to commence liquidation sales and start the countdown to closing the previously announced Kmart and Sears store closures. Many of these locations have been in limbo on the closing list, but have not yet commenced liquidation sales. Those sales will begin almost immediately with the arrival of liquidators.
The court has issued the following guidelines (edited for brevity) for closures, which strongly favor Sears:
(a) The Store Closing Sales will be conducted during normal business hours at the applicable
Closing Stores or such hours as otherwise permitted by the applicable unexpired lease;
provided that the Debtors may, in their discretion, modify the business hours as necessary
or advisable, but no longer than normal operating hours as provided in the applicable
leases.
(b) The Store Closing Sales will be conducted in accordance with applicable state and local
“Blue Laws” and, thus, if applicable, no Store Closing Sales will be conducted on Sunday
unless the Debtors have been operating the applicable Closing Stores on Sundays.
(c) On “shopping center” property, neither the Debtors nor the Liquidation Consultant shall
distribute handbills, leaflets, or other written materials to customers outside of any
Closing Stores’ premises, unless permitted by the applicable lease or if distribution is
customary in the “shopping center” in which such Store is located; provided that the
Debtors and the Liquidation Consultant may solicit customers in such manner in the stores
themselves.
(d) The Debtors and the Liquidation Consultant shall have the right to sell or transfer the
furniture, fixtures, and equipment (the “FF provided that, if the Debtors propose selling or abandoning such assets,
which may contain personal or confidential information about the Debtors’ employees or
customers (the “Confidential Information”), the Debtors shall remove the Confidential
Information from such items of assets before such sale or abandonment, and retain such
Confidential Information until further order of the Court.
(f) The Debtors and the Liquidation Consultant may, but are not required to, advertise all of
the Store Closing Sales as “store closing sale,” “sale on everything,” “everything must
go,” or similarly themed sales. The Debtors and the Liquidation Consultant may also
advertise each sale as a “store closing” and have a “countdown to closing” sign
prominently displayed in a manner consistent with these Store Closing Procedures.
(g) If Store Closing Sales are to be considered “final,” conspicuous signs will be posted in
each of the affected stores to the effect that all sales are “final.” The Debtors and the
Liquidation Consultant shall accept return of any goods purchased during the Store
Closing Sales that contain a defect which the lay consumer could not reasonably
determine was defective by visual inspection prior to purchase for a full refund, provided
that the consumer must return the merchandise within seven (7) days of purchase, the
consumer must provide a receipt, and the asserted defect must in fact be a “latent” defect.
Returns, if permitted, related to the purchase of Store Closing Assets shall not be accepted
at stores that are not participating in the Store Closing Sales. Conspicuous signs will be
posted at each Closing Stores clearly describing return rights of purchasers.
(h) The Debtors and the Liquidation Consultant shall be permitted to utilize sign walkers,
display and hanging signs, and interior banners in connection with the Store Closing
Sales. All display and hanging signs in connection with the Store Closing Sales will be
professionally lettered and all hanging signs will be hung in a professional manner. In
addition, the Debtors will be permitted to utilize exterior banners and sign-walkers,
provided that such use is in a safe and professional manner.
(i) Neither the Debtors nor the Liquidation Consultant shall make any alterations to the
storefront, roof, or exterior walls of any Closing Stores, or interior or exterior store
lighting and will not use any type of amplified sound to advertise the Store Closing Sales
or solicit customers, except as authorized by the applicable lease.
(j) Landlords will have the ability to negotiate with the Debtors, or at the Debtors’ direction,
the Liquidation Consultant, any particular modifications to the Store Closing Procedures.
(k) No property of any landlord will be removed or sold during the Store Closing Sales.
(l) With respect to any personal property located in a Closing Store that is either (i) leased to
the Debtors by a third party or (ii) owned by a third party, such third party may contact
the Debtors and remove or cause to be removed such personal property from the Closing
Store after the completion of the Store Closing Sales and prior to the Debtors turning over
the premises to the applicable landlord.
(m) The Debtors will keep each store premises and surrounding areas clear and orderly,
consistent with past practices.
(n) The Debtors do not have to comply with Liquidation Sale Laws or lease provisions or
covenants that are inconsistent with these Store Closing Procedures.
(o) Pharmaceutical Assets will be sold or transferred in accordance with applicable state law.
(q) The rights of landlords against the Debtors for any damages to any Closing Store shall be
reserved in accordance with the provisions of the applicable lease.
[...]
(t) No landlord, licensor, property owner, or property manager shall prohibit, restrict, or
otherwise interfere with any Store Closing Sale at any Closing Store.
https://restructuring.primeclerk.com/sears/Home-DownloadPDF?id1=MTE3Njg5&id2=0