When Bankruptcy happens does it also affect Sears Hometown Stores? I apologize in advance if this is a stupid question but I'm not sure how it all works.
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Well, SHOS still depends on SHLD for about 80% of their product. The owners of SHOS will need to hold on if SHLD flies BK.It will not be pretty .Owners have already closed a lot of stores or have not renewed contracts. My guess is SHOS has a little less than 600 stores left.
Our local hometown store is slated to close in a few weeks . Most of the help is already looking for other work. They seemed prepared .
The problem is that most of the SHOS franchises are financed through SHLD so yes just like Canada, it will affect SHOS too
Business will drop way off since everyone will assume they are gone when Sears closes.
The Sears Hometown & Outlet Stores division split off into a separate stock several years ago, SHOS. That stock has been struggling almost as much as the main Sears stock. SHOS claims they have separate vendor contracts in place such that the remaining Hometown stores (I say 'remaining' since many of those have quietly closed over the last few years too) can continue operating even if the Sears corporate stores completely liquidate. How well that would actually work out remains to be seen.