Sears to close 100-120 Kmart, Sears full-line stores

[gwb-trading]

Quote from JamesL:

Because many of the stores were free standing, not some mall tenant, and the real estate they were sitting on held some considerable value when the deal was done. You know the story since then.

In summary, Lambert purchased K-Mart out of bankruptcy in 2003. In 2004, he purchased Sears. He was more interested in the real estate than the retail side of the business. He spun out the real estate holdings to a private company that he owned and proceeded to put big money directly in his pocket from the RE deals. The retail side of the business was largely ignored and allowed to deliberately sink downhill.

Sadly that brings Sears to where it is today. A shell of the power-house retailer that the firm formerly was.

 

[atticus]

Quote from gwb-trading:

In summary, Lambert purchased K-Mart out of bankruptcy in 2003. In 2004, he purchased Sears. He was more interested in the real estate than the retail side of the business. He spun out the real estate holdings to a private company that he owned and proceeded to put big money directly in his pocket from the RE deals. The retail side of the business was largely ignored and allowed to deliberately sink downhill.

Sadly that brings Sears to where it is today. A shell of the power-house retailer that the firm formerly was.

IIRC, Lampert sold $870MM in RE.