17 Kmart Stores Set to Close By the End of the Year

by San Antonio Attorney

Kmart employees have received the worst news last week.  Most stores, particularly the satellite branches, are set to close by the end of 2016.  The employees will be laid off from their jobs.

It has been confirmed that 12 stores in 11 different states will be closed for good on or before December 11.

A Sears spokesman stated that they have been strategically evaluating their store spaces and have planned on accelerating the closure of store that do not generate any profit.

Seritage Growth Properties, the real estate investment trust known for its public trades, is the main purchaser of  Sear Holdings former stores.

Seritage Growth recently filed a document last Friday, with the Securities and Exchange Commission about how the company aims to terminate its leases with the store already bought by Seritage.

As written on the document, Sears Holdings have exercised the right under the Master Lease.  This will be terminated in accordance of the 17 non profitable stores.

The affected stores include Sears, Auto Locations and will not be limited to the Master Lease under the agreement under the Sears Holdings conduct leases back from Seritage.

It is reported that almost 17 stores are set to close by the end of the year.  More store closings are bound to happen.  There is a list circulating around, which includes other stores.  Some of these enumerated stores were based on tips but there has not been any official confirmation with regards to the closings.

Until the stores close for good, Sears Holdings will shoulder the rental fees.  By the end of January, the company will pay REIT the whole equivalent of the rent worth one year as a termination fee.

The store may have been unsuccessful as the fate of Kmart stores but this does not mean that a tenant cannot thrive as the new replacement.  The store will be remodeled or divided into smaller entities.

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