Thread regarding Sears layoffs

And The Lawsuits Keep On Coming

Add The Mall of America to the list of people suing Eddie Lampert.

It seems the Bloomington, Minnesota-based mall wants its empty three-story space back from Lampert, who pays-ready for this?-$10 annual rent.

Mall of America owners are panicking because this situation can lead tenants to end their leases at the mall.

Malls need anchor stores to draw traffic to all the stores. When an anchor store leaves tenants can either renegotiate their lease-in other words, pay less money on the lease-or close shop and move out. To prevent this scenario, some mall owners may have a clause in tenants contracts to prevent them from leaving the mall, if an anchor store leaves.

Mall landlords have unlimited resources to fight Lampert/Transformco in court. Lampert is already fighting three current lawsuits from Sears Holdings, Stanley Black and Decker, and Sears Hometown and Outlet investors.

Lampert will fight this latest lawsuit with his army of corporate attorneys. His reputation among those in the retail world is most likely gone. His handling of Sears/Kmart stores has doomed him, permanently.

https://www.foxbusiness.com/markets/mall-of-america-wants-control-of-empty-sears-store

by Common 76
| 1461 views | | 4 replies (last November 13, 2019) | Reply
Post ID: @OP+11ZbvodP
Comment! It's anonymous!

4 replies (most recent on top)

The Anchor Stores were the draw to the mall so to keep them at the mall, the rest of the stores pay a higher rent per square foot. It has been a basic practice for years. So the fact that Eddie wants to keep the property (Seritage) to reconfigure them into smaller rental spaces and hike the $ per square foot. That is also what the Mall Owners want to do.

by Anonymous
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Post ID: @1xie+11ZbvodP

This should tell you it was a real estate play all along. $10 rent. A bare minimum of employees and the store would almost be guaranteed to be profitable if they sold virtually nothing. The store would probably be profitable on $2000 a day in sales.

by Anonymous
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Post ID: @1blf+11ZbvodP

Malls don't have unlimited resources. Perhaps you haven't noticed but Penney's has been leaving malls as well. Mall owners aren't exactly in great shape financially, CBL is teetering on bankruptcy themselves!

by Anonymous
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Post ID: @1zwx+11ZbvodP

I’ve been told, many tenant leases are based on occupancy % of space. That why in many malls, they fill those spaces with junk stores, calendar stores or stores that use to be kiosks.

by Anonymous
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Post ID: @ias+11ZbvodP

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