Here's what I think is happening

Hi everyone! It's been several months since I left HE, so I no longer have direct information. But I've been watching what is happening and have a theory.

We all know Eddie has been selling the company off by the pieces...that's been going on for years. But at some point there becomes too little left to operate as a real business (some could argue we're already there). At some point, this ends. I think we all know that – the ongoing question is "how?"

With DieHard now sold, I looked at what is left to Transformco. It's basically the Kenmore brand, A&E, and a bunch of scattered, random real estate that could never support a sustainable distribution network on its own. My conclusion: I think Lowe's will buy Transformco.

DieHard never fit with Lowe's strategy..so it made sense to get rid of that. Everything that is left does make sense, especially Kenmore and A&E. I suspect Lowe's will buy the company and selectively choose certain sites to bulldoze and rebuild, while disposing or renting out most of the others (they're not in it for the real estate).

I'm curious what you all think?

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Yeah, Lowe’s has been looking to increase their in mall presence, what a great format for them. They could even put their lumber and roofing supplies on the second floor of the two story buildings (I’m sure they were built to support the load and forklifts and building materials). Plus, as long as the escalators are working, it will be a snap to get all those supplies downstairs, through the manual doors to customer’s vehicles at the convenient covered loading zones they have in front of the mall entrances.

Unless you mean the leased Kmart stores, because again, I’m sure Lowe’s is looking to increase their presence in low income neighborhoods where home ownership is high and so many have disposable income for home improvements. Gosh, it’s a business plan that just writes itself.

Lowes or Walmart????? 🤣😭😁🤡 Are you HIGH???

I’m still at HE and from what I understand is the scuttlebutt is that Walmart is looking at buying the remaining pieces. They will also be buying FedEx in the next several months to compete with Amazons rapid entry into delivery services.

I think Lowe’s is doing just fine and wants nothing to do with buying old run down sears stores in the less than optimal locations that remain.

Transformco should be treated like nuclear waste and buried underground.

@12FId39b Lowes would be fools to buy Transformco at this point. The issue is prying Eddie Lampert's power-control claws off of the company. Eddie does not like to give up power and control easily. He must have say in everything. Eddie would want "royalties" from Lowes. That's how he operates.

Reputable companies would avoid Eddie like a bad flu virus.

The sites left are asbestos littered environmental remediation nightmares that aren't worth the real estate. The reason the real estate hasn't sold is because it can't. The expected lease rates haven't been holding up to Seritage's rosy forecasts, partially due to the crashing market, partially because the cost of getting them back to spec because of how trashy Eddie has maintained them, so those will come home to roost when the creditors come calling on those oh so harsh covenants, but the equities market that doesn't pay attention and has never understood credit structures is completely fooled for the time being. ESL is in trouble and a lot of it.

I think your hitting too close and this post will be deleted to silence you

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Here's what I think is happening

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