https://news.bloomberglaw.com/bankruptcy-law/sears-hometown-stores-files-for-chapter-11-bankruptcy-protection
17 replies (most recent on top)
I feel horrible about SHO. Since 2019 it was the only viable store-based part of the company left. They had a good team and deserved better. My only question is whether Chapter 7 or just ceasing operations is in store for what remains. The legal and accounting partitions to keep all this going, and this includes Seritage, are now just cardboard roadblocks against a tank. As for the "part of the plan" statement in this thread, I'll say this. Maybe these adulators can begin to forecast when exiting the Forbes list of billionaires becomes "part of the plan." Oh, but I forget, due to hidden partnerships, and all the other hidden "plans," the owner and founder of LVMH is actually number 2.
Searshometown.com now redirecting to sears.com. Pretty strong evidence they're liquidating.
whats' a really dck move on top of many dck moves: none of the Hometown stores are listed/locatable. So you'll have 120+ franchisees with less ability for customers to find them.
I keep seeing statements that say its reorganizing, NO CHAPTER 11 was just to give them time to liquidate
“What is happening here is this company is going out of business,” Mark Minuti, an attorney for Sears Hometown, said during the company’s first bankruptcy hearing. “Make no mistake about it: this is a sad day for our company.”
I wonder how many people that puts out of a job, Sears hometown was a great program with quality people in leadership positions its crazy this is the outcome
https://finance.yahoo.com/news/sears-hometown-sad-day-arrives-205635689.html
Looks like all of the home towns will closes: https://m.facebook.com/groups/2183126268459251/permalink/5746147358823773/
Sears Hometown stores was a separate company until Eddie Lampert bought it out in early 2019 and made it a subsidiary under Transform/Holdco. So, Hometown stores can declare bankruptcy while the overall holding company survives.
It appears they are intending to prolong the agony by pursuing a reorganization rather than just shutting it down. I feel for the Hometown store owners who are caught up in this mess.
Interesting article:
https://www.retaildive.com/news/sears-hometown-files-chapter-11-bankruptcy/638626/
The WSJ article says Hometown Stores, owned by Eddie (and if you are owned by him, you are under his total and complete control, as we learned since 2005) are in a disagreement with Transformco, which is owned by Eddie.
The left hand is arguing with the right hand? Like we should believe that. Another artificial circumstance to help Eddie in whatever his plan is in bankruptcy court.
The Wall Street Journal article (behind a paywall) says there are 121 remaining Hometown stores. The official Sears Hometown Store locator lists 127. Other people here say at least 9 of those 127 are no longer operating.
These stores are franchises, not owned by Sears or Transformco or Fast Eddie. Does the bankruptcy allow the franchisees to exit their contracts early?
This will allow Sears to finally "right size" their store footprint and continue their transformation
"What's the prediction for how many locations come out of bankruptcy? Does chapter 11 filing mean they intend to have some come through? I predict ~30 left", I think they filed 11 so they could operate through the liquidation not because they expect stores to come out of it, are the stores independently owned? like they sell the liquidated merchandise and rely on a bankrupt company to pay them for that thus becoming creditors themselves or do they get their portion right as they sell the item to protect themselves?
They're saddled with old inventory at a small number of far flung locations, most of which are outside of major metropolitan areas. Filing for bankruptcy 2 weeks before Christmas so they know they are f*d.
What's the prediction for how many locations come out of bankruptcy? Chapter 11 filing means they intend to have some come through? I predict ~30 left (75% of the existing stores gone).
Possible payoff to the remaining stores if they proceed to do the liquidation? This wind down has been part of Eddies entire plan.
Bad news for the few remaining stores, they are liquidating the inventory.
https://www.wsj.com/articles/sears-hometown-stores-files-bankruptcy-to-liquidate-merchandise-11670898616
this is ridiculous.. this man is an embarrassment.
Thanks for the non-pay link
I thought this no longer existed as a company separate from Sears?
https://finance.yahoo.com/news/sears-hometown-files-bankruptcy-delaware-212223437.html
Non-paywall link.