Desperate Sears Holdings is auctioning debt in the Hallway

Debt is not the only thing, Sears Holdings is trying to unload. The Chicago Tribune reports Sears is seeking buyers for 505 stores.

If a buyer cannot be found for the stores by December 5, 2018, (next Wednesday) Sears could liquidate the locations. Notably, Sears Holdings is seeking bids on the liquidation of the stores as well.

Sears is planning to sell or liquidate most of its locations if The Tribune is correct. Sears operated 866 stores in August 2018, USA Today estimates. In detail there were 506 Sears’ stores and 360 Kmart outlets in operation over the summer.

However, that number has probably shrunk because of recent closings. Notably, Sears planned to close 13 Kmarts and 33 Sears stores in November. Hence Sears is probably operating around 820 stores.

Thus Sears is planning to shrink its footprint to 315 stores if The Tribune and USA Today are correct. Under those circumstances, most of the company’s stores will close.

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Do Department Stores Make Money?

Part of the reason why retailers such as Penney’s, Sears, Macy’s and Dillard’s are having a hard time maintaining revenue growth is that they have fewer customers. The percentage of middle class families in the population of every state of the Union shrank between 2000 and 2013, research from the Pew Charitable Trust indicates.

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Sears is Dying Faster than We Thought

That means Sears could close over 200 stores by the end of the year. It only closed 96 stores last year, and if that isn’t a sign of the death spiral, I don’t know what is. For those of you unfamiliar with it, the death spiral occurs when a retailer’s sales cannot cover its operating expenses, so it has to start closing stores or selling assets to pay the bills.

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