Post after post keep discussing when their lease is up... let me clarify your lease is up in 2017! Period, if you work for sears or Kmart, you will be jobless at some point this year. Doesn't matter what state your in, when you started, what your sales are, when your lease is... YOUR STORE IS CLOSING!
5 replies (most recent on top)
"Please listen. I know that people say that "We just signed a new 4,5,6 year lease so we can't go out of business". As someone whose dad worked in commercial real estate (with me helping summers), leases mean nothing in the commercial world. I could sign a 100 years lease and get out of it in a year."
I agree. We rent out a house and the lease is more for the renter's protection then it is for ours. The renter can and will leave if they must due to a job transfer or a job loss etc. They will be able to break the lease and move. They may pay a penalty or if we can rent the house quickly and the renters have respected our property we don't like to make things difficult and usually let them off the hook.
The lease protects our renters from US telling them we want them to move out before the lease is up. They will have a legal contract to not have to leave our property before their lease is up. The lease gives the renter peace of mind that they have a place to live without being kicked out before the expired lease. However, THEY can leave anytime they need to or want to.
I too work with people who just don't understand. I get that many of the seasonal and young workers dont get it, it really doesnt affect them. But when people who have worked here for decade still think that they are going to get a raise, get some benefits, move up in the company, whatever. they dont get it. I also feel sorry for the few people who have signed up to be in the management training at our store. They have taken off school, given up other jobs, bought cars, houses to take the management track in SHC only to ultimatley be layed off or let go. You have been warned
@L53NRw6-bak I know that the co-worker might not be looking at the bigger picture, but at least they (the co-worker) are putting a positive spin on a truly ugly situation by saying that y'alls store isn't affected by this round of closures!
I had a co-worker today look at me and excitedly exclaim "well we didn't make the cut list! Our store isn't closing!"
I looked at her with sadness. One of the ones that just doesn't get it.
They are all closing.
Please listen. I know that people say that "We just signed a new 4,5,6 year lease so we can't go out of business". As someone whose dad worked in commercial real estate (with me helping summers), leases mean nothing in the commercial world. I could sign a 100 years lease and get out of it in a year.
The longer the term on your lease the less you pay per year. There is always an out.
Example: Say I sign a 5 year lease and my monthly payments are $1000. IF I signed a 10 year lease my payments may be $600 or if I signed a 1 year lease my payments may be $1500. But there is in most cases a clause to get out of the lease.
If the business goes bankrupt, if they need more space or less space there is a penalty. So if I sign a 5 year lease and I need to get out in three years the penalty may be 1 years rent, if I try to get out in two years the penalty may be 18 months rent etc. So just by signing a lease it means nothing. SHC may have signed a long term lease to get a favorable rent for the short term to save cash flow.
There are many variables in the equation but that is the basic way lease agreements work. And with a bankruptcy I don't know what the law or terms would be. But as the previous poster stated.. This company will go under in the next 6-12 months.