RE: Say Farewell To An American Icon
October 15, 2018 at 1:15 am
(This post was last modified: October 15, 2018 at 1:20 am by Anomalocaris.)
Sears normally functions as anchor store in malls and shopping centers. The presence Of Sears brings customers to the mall, and in return the mall lease premium space to sears at discount rates. Sears gets a bargain, in return sears makes the other mall tenants more viable and able to pay a higher rent.
About 10 years ago, a group of “investors” decided there is value to be extracted here, an egg in the goose that can be obtained by killing it. So they bought sears, created fictitious holding company to take over the favorable long term lease that sears had in malls across America, and used their position on the board to sublet the very same mall space back to sears at exorbitantly higher rate, allowing tge “investors” to pocket the difference, in effect looting sears. This is how sears died.
Sears didn’t die because of mismanagement. It died because it’s management made a conscious decision to destroy it in order to extract maximum value from it in sort run for their predatory investors. They consciously decided to kill the goose and get the egg and run, because it is too complicated to feed the goose properly.
Sears died in exactly the same way as Toys R Us.
About 10 years ago, a group of “investors” decided there is value to be extracted here, an egg in the goose that can be obtained by killing it. So they bought sears, created fictitious holding company to take over the favorable long term lease that sears had in malls across America, and used their position on the board to sublet the very same mall space back to sears at exorbitantly higher rate, allowing tge “investors” to pocket the difference, in effect looting sears. This is how sears died.
Sears didn’t die because of mismanagement. It died because it’s management made a conscious decision to destroy it in order to extract maximum value from it in sort run for their predatory investors. They consciously decided to kill the goose and get the egg and run, because it is too complicated to feed the goose properly.
Sears died in exactly the same way as Toys R Us.
