Sears is suing Lampert and the US Treasury Secretary

Thus, circumstances support the lawsuits allegations that Lampert and other insiders were conspiring to strip Sears of assets. The stripping allegedly includes hundreds of millions of dollars in rent and leases Seritage charges Sears.

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Sears Gets Stranger Again

Such property could become even more valuable as retailers such as Whole Foods, Sprouts, Kroger and Walmart expand their operations in core cities where Sears and Kmart have many choice locations. Former Sears stores could be perfect locations for high-end markets like Sprouts, Whole Foods and Kroger’s high-end subsidiaries such as Mariano’s and Harris Teeter.

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Seritage Will Not Help Sears Avoid Death Spiral

One also has to wonder what Seritage investors are actually buying. Seritage purchased the properties from Sears for $2.72 billion, yet it only raised $1.6 billion through the IPO. It is unclear how it will generate revenue because all but 11 of the properties it owns are leased back to Sears, a company that’s losing $2 billion a quarter. There’s no guarantee that Sears will be able to cover those lease payments.

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