- In most cases mall landlords dread the liquidation of a big retail chain, but in the case of Sears Holding (OTCPK:SHLDQ), many landlords are embracing it, the Wall Street Journal reports.
- Mall owners Simon Property Group (SPG +0.5%) and Brixmor Property Group (BRX +1.7%) are part of a group that says Eddie Lampert's plan to keep Sears stores open would result in substantial costs without much hope for success.
- The chain is "pursuing an unjustified and foolhardy gamble with other people's money," the creditor group said in court papers.
- Taking back stores would allow landlords to regain cotenancy rights, which allow tenants to seek reduced rents if an anchor tenant or a certain number of tenants leave the shopping center. Sears has had control of such rights for decades, said some mall owners.
- "There seems to be more value in the real estate than the rent Sears was paying," says Ami Ziff, director for national retail at real-estate firm Time Equities Inc.
- Previously: Sears expected to pull liquidation lever (Jan. 8)
- Related tickers: CBL, WPG, PEI, SRG
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Original article