Sears/Kmart Death Watch 2018

Predicting the demise of Sears & Kmart since 2017!
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reymann
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Re: Sears/Kmart Death Watch 2018

Post by reymann »

i think walmart may be interested in some of the norcal/bay area kmart stores where they've had a difficult time opening stores in. they could buy those kmart stores to strengthen their presence in the bay area.
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Re: Sears/Kmart Death Watch 2018

Post by storewanderer »

Which stores are you thinking of? They've closed pretty much all in NorCal except some rural stores. Pinole was just announced a couple weeks ago.

I think Scotts Valley is the only one left in the bay area.
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Re: Sears/Kmart Death Watch 2018

Post by rwsandiego »

Well, it finally happened. Sears Holdings files for bankruptcy.
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Re: Sears/Kmart Death Watch 2018

Post by storewanderer »

Round 2 for Kmart.

It will be interesting to see how the upcoming 142 store closures are allocated between the two chains.

This part is interesting:
"Strategic Actions

Holdings intends to reorganize around a smaller store platform of EBITDA-positive stores. The Company believes that a successful reorganization will save the Company and the jobs of tens of thousands of store associates. Holdings is currently in discussions with ESL regarding a stalking-horse bid for the purchase of a large portion of the Company's store base."

http://searsholdings.com/press-releases/pr/2116
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Re: Sears/Kmart Death Watch 2018

Post by rwsandiego »

storewanderer wrote: October 14th, 2018, 10:36 pm Round 2 for Kmart.

It will be interesting to see how the upcoming 142 store closures are allocated between the two chains.

This part is interesting:
"Strategic Actions

Holdings intends to reorganize around a smaller store platform of EBITDA-positive stores. The Company believes that a successful reorganization will save the Company and the jobs of tens of thousands of store associates. Holdings is currently in discussions with ESL regarding a stalking-horse bid for the purchase of a large portion of the Company's store base."

http://searsholdings.com/press-releases/pr/2116
Isn't it nice how Sears Holdings parent might be the stalking-horse bidder for a large portion of its stores?
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Re: Sears/Kmart Death Watch 2018

Post by Knight »

Reading the press release:
  • Sears Holdings has filed for Chapter 11 bankruptcy. Chapter 11 keeps an entity in operation. Chapter 7 closes an entity.
  • Eddie Lampert will remain Chairman of Sears Holdings, but has vacated the Chief Executive Officer position.
  • One hundred forty-two additional Sears and Kmart stores will close. The list of affected stores is yet to be released.
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Re: Sears/Kmart Death Watch 2018

Post by Knight »

Here is a list of Sears and Kmart stores closing:
https://www.businessinsider.com/sears-k ... st-2018-10
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Re: Sears/Kmart Death Watch 2018

Post by babs »

reymann wrote: October 14th, 2018, 1:36 pm i think walmart may be interested in some of the norcal/bay area kmart stores where they've had a difficult time opening stores in. they could buy those kmart stores to strengthen their presence in the bay area.
I don't know the specifics but most stores that were worth anything were sold to either Seritage or to the landlord of the mall. Sears and Kmart don't own much real estate or have great leases worth taking over. Most of the leases have out clauses if a better deal comes along. If Walmart wants a store, they can just talk to the landlord and can probably get it. There's little likelihood they would buy any of these stores.

It's liquidation sometime in Q1. I don't see any other outcome.
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Re: Sears/Kmart Death Watch 2018

Post by Super S »

Knight wrote: October 15th, 2018, 7:53 am Here is a list of Sears and Kmart stores closing:
https://www.businessinsider.com/sears-k ... st-2018-10
A couple thoughts about some locations I am familiar with:

Beaverton, Oregon: This store should have closed a long time ago as it is rundown inside and out. Worth noting is that this is the last Kmart in the Portland metro area. Now two left in Oregon: Corvallis and The Dalles.

Puyallup, WA: The Auto Center here closed last year, but the mall itself seems to be in ok shape. I found it interesting that this one stayed open while Tacoma Mall closed though.

Salem, OR: The mall is going through a redevelopment which has walled off about half of the inside mall. The store is a smaller location. This marks the company's exit from Salem, which once also had two Kmarts.

Boise, ID: A little surprising that they are closing at the largest mall in the state. But not so surprising when knowing GGP owns the mall. GGP and Sears have not had a great relationship over the years. This pretty much marks the company's exit from Boise.

Casper, WY: (double whammy) Losing a Sears and Kmart. Wyoming seemed to have more Kmarts in the smaller towns in the past but Walmart probably had an effect here.

Santa Rosa, CA: Sears is in the mall downtown, but Kmart did not rebuild after their location burned down last year. Kmart had a rocky relationship with the landlord of the Santa Rosa location before the fires that burned down the store last year. Not sure if this had any effect on the Sears, but they could have used that as an opportunity to adjust the merchandise mix at Sears a bit.

I am still not convinced the company is going to survive the bankruptcy. I expect a major announcement after Christmas.
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Re: Sears/Kmart Death Watch 2018

Post by J-Man »

The South Coast Plaza (Costa Mesa, CA) Sears is on the list. I'm surprised that store has lasted as long as it has -- not because it's unsuccessful, but because that mall has gone VERY upscale over the last 20 years or so and Sears seems out of place among the mix of other tenants.
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