Some other updates on the status of the company:
- Eddie (ESL)'s $150 million in loans to Transformco, posted a couple weeks ago, has been joined by $100 million from an outside investor. That should at least keep the remaining stores going a little while longer, but the more the number of stores shrinks, the harder the fixed costs are to keep up with.
- From the CEO's LinkedIn page, the buyer of the split-off Sears Outlet stores, 'Franchise Group' (owner of Liberty Tax), will be renaming Sears Outlet to something else that will be announced in January 2020. With fewer and fewer Sears stores to send them damaged/discontinued products, I guess they want to broaden the stores' scope to taking in unwanted merchandise from other chains too.
- The number of remaining Sears Hometowns is down to just 414 as of the recent completion of the acquisition by Transformco. So they've lost hundreds of locations just this year too. Some were the franchisees wanting out, others were SHOScorporate forcing them out due to not enough merchandise to stock all the stores.
- From an anonymous Sears employee on Reddit, about the smaller stores Sears corporate had been testing that was supposed to be the future of the company: "Home and Life is dead as a concept. The team responsible for it was canned in one of the rounds of layoffs over the spring [2019], hence no new openings since the initial 4 and then the cancellation of the leaked Boston area store."
- Also from Reddit, for stores in the test market for the $99/yr 'Sears Plus' program we were talking about recently ( https://www.businessinsider.com/sea...azon-prime-style-membership-discounts-2019-10 ) , it is being pushed heavily at the registers because employees will receive $10 for each customer they sign up for it. And any employees caught saying anything negative about 'Sears Plus' (whether internally or to customers) are being threatened with being fired. So I guess this is supposed to be the new future of the company.
- Also from Reddit, the southeast may now be at risk of more Sears closings in the next round, probably to be announced shortly after Christmas. Transformco just sold the Ocala, Florida distribution center's building last week, which services "FL, GA, SC, and NC". "MS, AL, and TN are already devoid of stores."
