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Is Sears closing both it's Kelowna Stores?

Is Sears closing both it's Kelowna Stores?

Postby spudnut » Oct 1st, 2017, 11:35 am

Is Sears closing both it's Kelowna stores. Several news outlets show both the Home store and the original retail store are on the latest list of Stores, Sears is closing.
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Re: is Sears closing both it's Kelowna Stores?

Postby Bsuds » Oct 1st, 2017, 12:23 pm

Thats the way it appears at the moment. I guess time will tell.
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Re: is Sears closing both it's Kelowna Stores?

Postby spudnut » Oct 1st, 2017, 12:26 pm

Just read this week's press release from Sears and both the Kelowna Stores are closing.
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Re: is Sears closing both it's Kelowna Stores?

Postby Frisk » Oct 1st, 2017, 12:41 pm

.
Last edited by Frisk on Nov 5th, 2017, 2:19 pm, edited 1 time in total.
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Re: is Sears closing both it's Kelowna Stores?

Postby Frisk » Oct 1st, 2017, 1:09 pm

.
Last edited by Frisk on Nov 5th, 2017, 2:17 pm, edited 1 time in total.

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Re: is Sears closing both it's Kelowna Stores?

Postby forumdoug » Oct 1st, 2017, 1:10 pm

While I'm a bit surprised that the timing comes this early (I'd predicted it in a subsequent round of closures, possibly near their emergence from CCAA or post-emergence, it does seem to be true. However, perhaps not surprisingly, Castanet's ad sales department is again flexing its "muscles" over its editorial and content departments by not covering that story as it pertains to a "local business" and thus, either a current or potential Castanet advertiser. :(

Details here:
http://cfcanada.fticonsulting.com/searscanada/docs/Motion%20Record%20of%20the%20Applicants%20for%20Approval%20of%20Lease%20Surrender%20Agreement%20with%20Orchard%20Park%20Shopping%20Centre%20Holdings%20Inc.%20returnable%20October%204,%202017.pdf

It would appear they've agreed to surrender their lease for both stores to H&R REIT through its Primaris subsidiary that owns the shopping centre. These may not have been planned closures but H&R REIT may well have felt the timing was right as they are up to near full occupancy again and it would be a good time to offer preferential terms to Sears to surrender their lease at minimal or even no cost to Sears, potentially even a financial benefit to Sears, in exchange for being able to demise the current Sears store into a bunch of smaller stores that command higher per square foot lease rates. The Sears Home store closing is sad as Sears has always been excellent with warranties and customer service but, hopefully, maybe Leon's can bring their Leon's brand to Kelowna in the local mall and maintain The Brick further out towards the periphery of town. :)

Cheers,
Doug
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Re: is Sears closing both it's Kelowna Stores?

Postby forumdoug » Oct 1st, 2017, 1:23 pm

Based on my initial "reading" of the document, some key points:
  • Both store lease terms expire August 31st, 2021, though Sears Canada currently has two (2) 10-year lease renewal options pursuant to its current lease agreement with Orchard Park Shopping Centre Holdings Inc. (the indirect, wholly-owned subsidiary of H&R REIT that holds legal title to the property) that would, if fully exercised, allow Sears to maintain the stores to 2041 without negotiating a new lease
  • Closing Date is scheduled for three (3) business days following the Approval and Vesting Orders of the Toronto judge, who is scheduled to hear oral arguments on October 4th, 2017, and is likely to render a decision later that day.
  • Unless Orchard Park agrees to an extension, final closing of the stores in question must happen no later than December 24th, 2017
  • The "Surrender Consideration" that Orchard Park is to pay Sears for early, vendor take-back of the spaces is not disclosed as the company would consider it to be "prejudicial" to its other negotiations that may be ongoing (meaning additional stores are likely on the list for closure, beyond those initially announced)
  • The two parties have been in discussions since July and agreed to final terms of the Lease Surrender Agreement September 22nd, 2017, which they formally announced via Application to the Court on September 29th, 2017
Cheers,
Doug
Last edited by forumdoug on Oct 1st, 2017, 1:25 pm, edited 2 times in total.
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Re: is Sears closing both it's Kelowna Stores?

Postby pentona » Oct 1st, 2017, 1:24 pm

spudnut wrote:Just read this week's press release from Sears and both the Kelowna Stores are closing.


The Castanet news story only states that ONE store is closing (the Home Store). Perhaps this is Fake News? and both are closing. The document from the link seems pretty clear that both ARE indeed going.

https://www.castanet.net/news/Kelowna/2 ... re-closing
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Re: is Sears closing both it's Kelowna Stores?

Postby forumdoug » Oct 1st, 2017, 1:27 pm

I didn't see a Castanet story. If it quotes one store only, that's wholly inaccurate. While a bit surprising (I wanted Sears Home to stay and Sears full-line to close), both are indeed closing no later than December 24th, 2017, unless Orchard Park agrees to an extension. :)

Cheers,
Doug
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Re: is Sears closing both it's Kelowna Stores?

Postby pentona » Oct 1st, 2017, 1:38 pm

forumdoug wrote:I didn't see a Castanet story. If it quotes one store only, that's wholly inaccurate. While a bit surprising (I wanted Sears Home to stay and Sears full-line to close), both are indeed closing no later than December 24th, 2017, unless Orchard Park agrees to an extension. :)

Cheers,
Doug


Read the link in my post above. Castanet clearly states the "Home Store"; no mention of the Retail store.

As it continues to restructure amid a financial crisis, Sears Canada has applied to close its Kelowna Home Store.
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Re: is Sears closing both it's Kelowna Stores?

Postby forumdoug » Oct 1st, 2017, 1:42 pm

pentona wrote:Read the link in my post above. Castanet clearly states the "Home Store"; no mention of the Retail store.

As it continues to restructure amid a financial crisis, Sears Canada has applied to close its Kelowna Home Store.


Don't believe everything you read on Castanet. ;)

Aside from that, re-read my post above. No offence but I don't see how you could misinterpret what I clearly wrote that while I hadn't read Castanet's story, I pointed out that if that's what it says, then that doesn't make it accurate and explained why. I said Castanet's story is wholly and patently factually inaccurate. I've read the Application and both stores are closing. I've reported the factual error, via the "report a typo" page, to Darren and Jon but I'm not expecting a correction. Castanet loathes admitting their mistakes. :(

Cheers,
Doug

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Re: is Sears closing both it's Kelowna Stores?

Postby pentona » Oct 1st, 2017, 1:46 pm

I have no doubt that YOUR link is correct. Perhaps if we talk about "them" (who is them? lol) long enough, they will make the correction. [icon_lol2.gif]

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Re: is Sears closing both it's Kelowna Stores?

Postby forumdoug » Oct 1st, 2017, 1:51 pm

pentona wrote:I have no doubt that YOUR link is correct. Perhaps if we talk about "them" (who is them? lol) long enough, they will make the correction. [icon_lol2.gif]


Okay, great. Sorry if any offence taken. "Them" would be the reporter, Darren Handschuh (normally a really good reporter, I liked him at the Daily Courier), and its editor-in-chief/news director/director of content, Jon Manchester, who I've initially had good and respectable dealings but, of late, he ignores me. :(

Cheers,
Doug

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Re: is Sears closing both it's Kelowna Stores?

Postby KevinJP » Oct 1st, 2017, 2:13 pm

Sears Canada should just call it a day. I'm surprised they've lasted this long, let alone the Kelowna store. I can't think of too many box stores left to fill the void. It's probably too small for a regular IKEA, but maybe big enough for their small-format units that they have in the UK??
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Re: is Sears closing both it's Kelowna Stores?

Postby forumdoug » Oct 1st, 2017, 2:26 pm

KevinJP wrote:Sears Canada should just call it a day. I'm surprised they've lasted this long, let alone the Kelowna store. I can't think of too many box stores left to fill the void. It's probably too small for a regular IKEA, but maybe big enough for their small-format units that they have in the UK??


Not going to happen. I think, if anything, is they'd be more likely to further reduce or even eliminate the pick-up fee for e-commerce orders delivered to their local Kelowna warehouse operated by XPO Logistics. :)

As for Sears' full-line store, which is closing, I think it's best to demise it into a combination of really small stores and stores the size of Old Navy. FGL Sports could relocate Atmosphere to Orchard Park, for instance. H&R REIT could also attempt to "poach" some RioCan tenants from Dilworth Shopping Centre at more attractive lease rates, such as JYSK, which is cramped in its current space and could take up a larger space (but not the full Sears store) or even, potentially, a World Gym and a Pennington's. A second food court could also be a good idea.

I hope the Sears Home store becomes a Leon's. :)

Cheers,
Doug
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