How Much Damage Would a Sears Bankruptcy Cause?
As the trend of repurposing retail space continues, the sheer number of Sears and Kmart closures if a bankruptcy were to happen would give landlords plenty to do. In their work researching the effects of shuttered anchor stores on malls, Dittmer and Jellinik have seen firsthand what is going on with Sears space that shutters. “We are seeing some spaces getting leased, but it is often not very lucrative for the mall. For instance, taking one floor of a big box and putting in a discount furniture store, we have seen that happen, but it is just a way to get some cash into the mall property. It is not necessarily a lucrative solution. We have also seen the space reconfigured for office space—call centers, medical space (direct primary care, outpatient clinic),” Dittmer and Jellinik say.
Apr 4, 2017 – With one line in its recent SEC report, Sears Holdings validated what everyone in the retail industry had been thinking for years. Sears’ accountants acknowledged in the company’s 10-K report for the fiscal year ending January 28, 2017 that “historical operating results indicate substantial doubt exists related to the company’s ability to continue as a going concern.”