muscleman Posted January 29, 2014 Posted January 29, 2014 "According to the terms of their revolver they cannot close stores at this pace throughout the entire year. (they are limited to a specific number annually)." -ve covenant allows for 250 per quarter and 500 TTM (iirc prior revolver was 100) Even then the collateral agent will waive that covenant. Spin Yeah. 500 TTM is sufficient to move the ball fast enough.
muscleman Posted January 29, 2014 Posted January 29, 2014 With this pace of closing, I expect another brutal quarter for Q1. The revenue will likely get a hit. I am curious if Eddie simply waited until these cash burning stores' leases to expire to close? He could have closed these stores 3-5 years earlier. People were saying that the stores were not aggressively closed because Eddie has to wait until RE value goes up. But that is for owned stores, not leased ones, right?
krazeenyc Posted January 31, 2014 Author Posted January 31, 2014 http://www.omaha.com/article/20140130/MONEY/140139874/1707 another store that is likely to close pretty soon.
adesigar Posted January 31, 2014 Posted January 31, 2014 With this pace of closing, I expect another brutal quarter for Q1. The revenue will likely get a hit. I am curious if Eddie simply waited until these cash burning stores' leases to expire to close? He could have closed these stores 3-5 years earlier. People were saying that the stores were not aggressively closed because Eddie has to wait until RE value goes up. But that is for owned stores, not leased ones, right? Well if you have a lease on the store. You need to pay the lease till it expires. The annual loss from the store may be same as or less than the annual lease payment. Just a guess.
Luke 532 Posted February 1, 2014 Posted February 1, 2014 Sears closing Galesburg store http://www.galesburg.com/article/20140131/NEWS/140139914
krazeenyc Posted February 1, 2014 Author Posted February 1, 2014 Norwalk Kmart to Close Mid-May 2014 (Lease not renewed) http://www.norwalkreflector.com/article/4088291 Fergus Kmart to Close Mid-March 2014 (Lease not renewed) http://www.inforum.com/event/article/id/425308/ Alexandrea Kmart to Close Mid-March 2014 (Lease not renewed) http://www.echopress.com/content/alexandria-kmart-store-close-soon Kmart in Wise to Close (Mid April 2014) Lease not renewed. http://m.tricities.com/news/article_581cd604-8aa0-11e3-939d-0017a43b2370.html?mode=jqm
Matson125 Posted February 3, 2014 Posted February 3, 2014 Logansport Sears store closing in May http://casscountyonline.com/site/content/logansport-sears-store-closing-may
krazeenyc Posted February 3, 2014 Author Posted February 3, 2014 2 Kmarts to close in Albany Region - CLifton Park and Latham (Mid-May) http://www.bizjournals.com/albany/news/2014/02/03/two-more-kmart-stores-closing-in.html
krazeenyc Posted February 4, 2014 Author Posted February 4, 2014 2 More Kmarts (Wisconsin) to close Mid-May 2014. (Prarie View Road and Oak Ave) CHIPPEWA FALLS, Wis http://www.weau.com/home/headlines/Mayor-Area-Kmart-to-close-243495761.html Kmart Greenville to close (Mid May 2014?) http://www.daytondailynews.com/news/news/local/kmart-close-greenville-store/ndCSd/
Luke 532 Posted February 4, 2014 Posted February 4, 2014 many thanks for keeping this thread updated, krazeenyc. much appreciated!
krazeenyc Posted February 4, 2014 Author Posted February 4, 2014 Oak Harbor Kmart to close (Late April 2014) http://www.whidbeynewstimes.com/news/243372181.html YW guys... Google does all the work lol :D
Luke 532 Posted February 5, 2014 Posted February 5, 2014 Kmart store closing at Palmer Park and Powers boulevards in Colorado Springs http://gazette.com/kmart-store-closing-at-palmer-park-and-powers-boulevards-in-colorado-springs/article/1514058
SpecOps Posted February 6, 2014 Posted February 6, 2014 Great informative thread, keep up the good work
Luke 532 Posted February 7, 2014 Posted February 7, 2014 Another Kmart to close in Albuquerque (mid-May, lease not renewed) http://www.abqjournal.com/349101/blogs/another-albuquerque-kmart-to-close.html
Luke 532 Posted February 7, 2014 Posted February 7, 2014 Newport News Kmart in Denbigh to close http://www.dailypress.com/business/tidewater/dp-newport-news-kmart-in-denbigh-to-close-20140207,0,4248075.story Mention store closings in 2012 and 2013, also another SHC Realty plug: "The company announced at the start of 2012 that it would close up to 120 Kmart and Sears stores after a dismal holiday shopping season. It closed 61 Kmart stores and 131 Sears stores in the first nine months of 2012 and 52 Kmarts and 16 Sears stores in the first nine months of 2013, according to a financial filing submitted with the Securities and Exchange Commission. The company is actively selling or leasing its closed properties through its real estate unit called SHC Realty. The online list also includes the Denbigh Kmart and the attached Auto Center and the closed Sears property at the Military Circle Mall in Norfolk, among other operating stores in Hampton Roads."
Luke 532 Posted February 10, 2014 Posted February 10, 2014 Kmart closing store in Murrells Inlet (Myrtle Beach) - close late April http://www.myrtlebeachonline.com/2014/02/10/4016496/kmart-closing-store-in-murrells.html
krazeenyc Posted February 10, 2014 Author Posted February 10, 2014 Sears Closing Kyova Mall store. http://www.wsaz.com/news/headlines/Sears-Reprtedly-Closing-KYOVA-Mall-Store-244713651.html
Luke 532 Posted February 10, 2014 Posted February 10, 2014 Kmart on Hwy. 17 in Charleston to close; Hendrick Auto buys property http://www.postandcourier.com/article/20140210/PC05/140219959/1010/west-ashley-kmart-to-close-in-late-april
BTShine Posted February 10, 2014 Posted February 10, 2014 It says it's owned by Baker and Baker. Not Kmart or SHLD. Good example of valuable real estate, though.
Luke 532 Posted February 10, 2014 Posted February 10, 2014 It says it's owned by Baker and Baker. Not Kmart or SHLD. Good example of valuable real estate, though. Berkowitz has referenced tax assessment values as his method of a base-line valuation. Nice to see some more evidence that his estimates might be extremely conservative.
Luke 532 Posted February 14, 2014 Posted February 14, 2014 Odd source but assuming it's legit... Kmart closing in East Cobb (Atlanta) http://www.tonetoatl.com/2014/02/dont-ship-your-pants-kmart-east-cobb-is.html?showComment=1392316457937
adesigar Posted February 14, 2014 Posted February 14, 2014 Small concept store closing http://www.chicagobusiness.com/article/20140214/NEWS07/140219828/sears-closes-craftsman-showroom-in-river-north
Luke 532 Posted February 19, 2014 Posted February 19, 2014 3 more announced... Grand Island Kmart store to close (June) http://www.theindependent.com/news/local/grand-island-kmart-store-to-close/article_14c8f21e-99ac-11e3-bfb6-001a4bcf887a.html Klamath Kmart to close: 64 jobs lost (June) http://www.heraldandnews.com/breaking/article_a2b99d4e-99a2-11e3-ab68-001a4bcf887a.html Fort Payne Kmart to close (June) http://times-journal.com/news/article_2b5ed024-99b7-11e3-8d86-0019bb2963f4.html
heth247 Posted February 20, 2014 Posted February 20, 2014 Great work, thanks, Guys. Just curious, how did you guys setup a search or automatic notification for this?
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