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Early in the morning, my smartphone notifications started to flash and buzz (this was the the Wall Street newspaper calling …), telling me something I had been waiting for for some time now: Sears finally asked for Chapter 11 protection from bankruptcy, marking the collapse of a retailer that dominated the United States for much of the year. 20th century.
Yoel Minkoff, editor-in-chief of Alpha News, said bluntly: "Sears (SHLD) filed for bankruptcy after years of financial maneuvers, a merger with Kmart and billions of dollars invested by the CEO. Eddie Lampert. It is expected to close 142 stores by the end of the year and begin liquidation sales shortly. While Lampert will step down as CEO, he will remain president of Sears, his ESL Investments business negotiating a debt loan and financing to support what was once the country's largest retailer in bankruptcy. "
the the Wall Street newspaper "Sears has an agreement with its lenders that will allow the 125-year-old company to keep hundreds of its stores open for the time being. The company operates approximately 700 Sears and Kmart outlets and employs approximately 70,000 people. The controlling shareholder, Edward Lampert (the) hedge fund manager, who had taken control of Kmart's merger with Sears in 2005, was running the company as it accumulated losses and closed hundreds of stores. these last years. the [142] the closures add to the 46 stores that are expected to close by next month. "
As I say, no surprise. When you see something coming with so much evidence, meaning and slowness … it's important to shout it over the rooftops, for example, "The British are coming!" Or "Iceberg coming!" past weeks (here and here) on the "not-so-but-when" scenario – and its implications for REIT investors. Subscribers of my monthly newsletter, Real estate investor Forbeswill recall that I have been highlighting Seritage and other relevant Sears tangential data for at least 11 months.
Quoting the main article in my newsletter of December 1, 2017, "I recently visited my local mall, the WestGate Mall, which is owned by CBL & Associates Properties (CBL), and I do not know what to expect. could not help me. but I wonder if the store will still work at the mall in a year. A few years ago, Sears was the largest retailer in the United States, employing one out of every 204 workers in the country. Sears stores have anchored shopping malls from coast to coast, selling everything from back to school clothes to tools to home appliances. I remember writing an article about the retailer when I was at the university; I called it something like, Sears sells everything, socks, shocks and even stocks. "
I presented a complete and relevant history, a business critique and an analysis of the company and stated, "There is no definitive plan to move Sears from the threshold of bankruptcy to profitability. Worse, the previous sales of Craftsman and Lands' End assets did not result in any profitability for the company. Without money to save time and develop a plan, Sears will have to declare bankruptcy as soon as possible. "
In addition, "In the research report (2015) of Wagner College, Why Sears Holding Corp. will go bankrupt, co-authors Bryan Maley, Edward Wolf and Frank Abt [a trio of college seniors] Explain: "We believe that Sears will eventually sink into a" spiral of death in terms of fairness ". A visit to one of their stores confirms it. they have more sellers than customers and the aisles are desperately empty. The fate of Sears seems inevitable and [CEO] Edward Lampert must develop a plan for a pre – packaged Chapter 11 bankruptcy (by 2020) in order to avoid even worse consequences. Their report is excellent.
Also in my newsletter article: "For Sears, the Hail Mary pass is Seritage. But if Sears rises too fast, the REIT will not have time to reposition its stores. It is a delicate balance, and Seritage risks being in a precarious situation, which may have to reduce its dividend. "(Currently, the SRG payout ratio is slightly above 102%.)
Last December, I explained how the brokerage REIT CBL Properties group (with Sears tenants) had already reduced its annual dividend and that problems could also hurt Washington Prime (WPG).
Then, as now, I publish a recommendation essentially "avoid" on these two REITs of shopping centers.
As part of my ongoing research and analysis, last week, I noticed a press release from WPG seeking to reassure its investors about Sears' bankruptcy. Beyond the description of their many actions and upcoming projects, Lou Conforti, CEO and Director of Washington Prime Group, said: "… we are actively planning the redevelopment and / or are under discussion for 24 of 28 (department stores) spaces (which includes Sears). The above presentation is available in the Investor Relations section of our website. "
"We have worked diligently to deal with areas of unproductive department stores in recent years and recent reports of an impending Sears bankruptcy should not surprise any homeowner unless they own some zayres or EJ places." Korvette are trapped in a space-time continuum where the Sansabelt sit on a long-haired carpet, illuminated by the warm glow of a lava lamp while they drink Tang and vodka and listen The Moody Blues. "
Investments in REITs should never rule out humor.
In December, I concluded my newsletter article stating: "In a way, Seritage saved Sears' life, which allowed the troubled retailer to survive beyond the expectations of many." , including me. However, when I take a last look at my local store, I think it may be the last year that Santa is filling his socks at Sears … and maybe Mr. Market will see that there is something like "survival of the fittest".
From dawn today, a collective sigh of relief is announced as the news is announced and cleaning can begin. Although this is not the best time, it is probably similar to the anticipation of a hurricane, the shock and devastation caused by the landing and its aftermath, and then, once the sky is over is released, damage, loss and grief, and finally, tending to rebuild.
I predict rebuilding here too – as it always is.
Disclosure: I hold shares in these shopping center REITs: SPG, TCO, SKT and PEI.
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Early in the morning, my smartphone notifications started to flash and buzz (this was the the Wall Street newspaper calling …), telling me something I had been waiting for for some time now: Sears finally asked for Chapter 11 protection from bankruptcy, marking the collapse of a retailer that dominated the United States for much of the year. 20th century.
Yoel Minkoff, editor-in-chief of Alpha News, said bluntly: "Sears (SHLD) filed for bankruptcy after years of financial maneuvers, a merger with Kmart and billions of dollars invested by the CEO. Eddie Lampert. It is expected to close 142 stores by the end of the year and begin liquidation sales shortly. While Lampert will step down as CEO, he will remain president of Sears, his ESL Investments business negotiating a debt loan and financing to support what was once the country's largest retailer in bankruptcy. "
the the Wall Street newspaper "Sears has an agreement with its lenders that will allow the 125-year-old company to keep hundreds of its stores open for the time being. The company operates approximately 700 Sears and Kmart outlets and employs approximately 70,000 people. The controlling shareholder, Edward Lampert (the) hedge fund manager, who had taken control of Kmart's merger with Sears in 2005, was running the company as it accumulated losses and closed hundreds of stores. these last years. the [142] the closures add to the 46 stores that are expected to close by next month. "
As I say, no surprise. When you see something coming with so much evidence, meaning and slowness … it's important to shout it over the rooftops, for example, "The British are coming!" Or "Iceberg coming!" past weeks (here and here) on the "not-so-but-when" scenario – and its implications for REIT investors. Subscribers of my monthly newsletter, Real estate investor Forbeswill recall that I have been highlighting Seritage and other relevant Sears tangential data for at least 11 months.
Quoting the main article in my newsletter of December 1, 2017, "I recently visited my local mall, the WestGate Mall, which is owned by CBL & Associates Properties (CBL), and I do not know what to expect. could not help me. but I wonder if the store will still work at the mall in a year. A few years ago, Sears was the largest retailer in the United States, employing one out of every 204 workers in the country. Sears stores have anchored shopping malls from coast to coast, selling everything from back to school clothes to tools to home appliances. I remember writing an article about the retailer when I was at the university; I called it something like, Sears sells everything, socks, shocks and even stocks. "
I presented a complete and relevant history, a business critique and an analysis of the company and stated, "There is no definitive plan to move Sears from the threshold of bankruptcy to profitability. Worse, the previous sales of Craftsman and Lands' End assets did not result in any profitability for the company. Without money to save time and develop a plan, Sears will have to declare bankruptcy as soon as possible. "
In addition, "In the research report (2015) of Wagner College, Why Sears Holding Corp. will go bankrupt, co-authors Bryan Maley, Edward Wolf and Frank Abt [a trio of college seniors] Explain: "We believe that Sears will eventually sink into a" spiral of death in terms of fairness ". A visit to one of their stores confirms it. they have more sellers than customers and the aisles are desperately empty. The fate of Sears seems inevitable and [CEO] Edward Lampert must develop a plan for a pre – packaged Chapter 11 bankruptcy (by 2020) in order to avoid even worse consequences. Their report is excellent.
Also in my newsletter article: "For Sears, the Hail Mary pass is Seritage. But if Sears rises too fast, the REIT will not have time to reposition its stores. It is a delicate balance, and Seritage risks being in a precarious situation, which may have to reduce its dividend. "(Currently, the SRG payout ratio is slightly above 102%.)
Last December, I explained how the brokerage REIT CBL Properties group (with Sears tenants) had already reduced its annual dividend and that problems could also hurt Washington Prime (WPG).
Then, as now, I publish a recommendation essentially "avoid" on these two REITs of shopping centers.
As part of my ongoing research and analysis, last week, I noticed a press release from WPG seeking to reassure its investors about Sears' bankruptcy. Beyond the description of their many actions and upcoming projects, Lou Conforti, CEO and Director of Washington Prime Group, said: "… we are actively planning the redevelopment and / or are under discussion for 24 of 28 (department stores) spaces (which includes Sears). The above presentation is available in the Investor Relations section of our website. "
"We have worked diligently to deal with areas of unproductive department stores in recent years and recent reports of an impending Sears bankruptcy should not surprise any homeowner unless they own some zayres or EJ places." Korvette are trapped in a space-time continuum where the Sansabelt sit on a long-haired carpet, illuminated by the warm glow of a lava lamp while they drink Tang and vodka and listen The Moody Blues.
Investments in REITs should never rule out humor.
In December, I concluded my newsletter article stating: "In a way, Seritage saved Sears' life, which allowed the troubled retailer to survive beyond the expectations of many." , including me. However, when I take a last look at my local store, I think it may be the last year that Santa is filling his socks at Sears … and maybe Mr. Market will see that there is something like "survival of the fittest".
From dawn today, a collective sigh of relief is announced as the news is announced and cleaning can begin. Although this is not the best time, it is probably similar to the anticipation of a hurricane, the shock and devastation caused by the landing and its aftermath, and then, once the sky is over is released, damages, as well as losses, and finally, tending to rebuild.
I predict rebuilding here too – as it always is.
Disclosure: I hold shares in these shopping center REITs: SPG, TCO, SKT and PEI.
