In 2002 Kmart suppliers and vendors were very worried when Kmart filed for BK because they needed the open stores to sell their products. They (vendors) helped the store get back into the black. But in 2019, with the .com shopping and so many other shopping choices, the suppliers don't care. They are done with the Eddie and the gang. That's why the 400-500 store plan didn't work. The vendors have given up on the chain. In addition, the communities and customers have given up. In early, 2003, there was a store near Buffalo, NY that was slated to close and the municipality was so desperate to keep the Kmart open that volunteered to pay the stores lease! (you can google it) Can you imagine that happening today? It would never happen! Yes, the Kmart stores in CA are down millions in sales, because the shelves are empty, the garden centers were bare all summer. The pantry has turned into a Family Dollar sh– show, we can't get product. As a result, Eddie is throwing in the towel. I actually think he wanted to keep the 400-500 chain open but the suppliers didn't agree.
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Without the 2008 recession, he might have cashed in the real estate a bit earlier. He's just been trying to mitigate his own losses for the last decade. A more competent leader could have probably at least given such a plan the appearance of propriety, however, rather than just a blatant cash grab facilitated near the end by what must have been either a monumentally gullible or irredeemably corrupt judge.
i agree with everything you stated except the end. Eddie just wanted to keep it open long enough to drag out the sale of the real estate to maximize return. This has never been a retail game for eddie