I’m wondering if Eddie has plans to offer Hometown locations to AF? He seems to be pushing the “owners” out, not supplying product, the stores are an embarrassment and look like a liquidation is in progress. Why would Eddie want to ruin the “owners” financially , s— them dry and close Hometown stores if he didn’t have a purpose for the locations? AF doesn’t seem to have an issue getting merchandise.
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My friend just rented her space for her hometown store. I would assume this is the case for most. So no real estate play. She ended her contact with hometown because she was hemorrhaging money. Her lease was also ending.
I honestly have no idea why he bought it back. He's losing money currently and he won't be able to sell it for a profit. Kenmore will probably be sold next.
Wonder too when they are going to update the website and remove the Outlet stores?
Sears Hometown and Outlet stores (SHOS) was previously a separate public traded company from 2012-2019). It was a short run after it was spun off in 2012. SHOS was going to liquidate the Hometown segment as it was bleeding money after constant loses. Its declined accelerated when Sears Holdings filed for bankruptcy.
SHOS already eliminated the Sears Appliance and Hardware format a year prior. Eddie, a majority shareholder voted against the liquidation of the Hometown segment. He then voter to merge SHOS formats back under the Sears umbrella. He really needed the 500 or so Hometown stores to improve the economics of scale of the supply chain. By this point, they had less than 90 Sears Full Line stores.
As part of the purchasing agreement, the condition was that his firm had the option to shop around the Outlet business. The Outlet business has always been profitable, hence the reason why SHOS was originally going to solely operate the Outlet format. Anyways, that Outlet business was sold to The Franchise Group. That company owns vitamin shop and some tax chain and American Freight. They recently branded American Freight and Sears Outlet stores to just American Freight.
Unfortunately, the Hometown business was never attractive to sell. It frankly should of been allowed to liquidate instead of the painful death. I really feel for the owners.
He may. None of us on a layoff board would know. Please ask him for us.