Sears Holdings Corp. is selling a combination of real estate assets to Amerco Real Estate Co. for $62 million.
The retailer said it had been in talks with potential buyers for certain assets, and had determined to sell to Amerco just before its voluntary Chapter 11 petition for bankruptcy court approval on Oct. 15. The discussions yielded an agreement in principal, but no executed agreement memorializing the contract’s terms until this past Thursday.
The property that will be sold includes 12 parcels of land that either is now occupied by or in the past housed a Kmart store and one location houses a Sears store. Included in the transaction are six commercial leases, all of which are leased to Sears or one of its debtor affiliates.
In a court document seeking approval for the sale, Sears said “three locations are ‘dark’ and six locations have negative EBITDA [earnings before interest, taxes, depreciation and amortization]. Although the remaining four locations are generating positive EBITDA, the purchase price being paid by [Amerco] warrants proceeding with the sale.”
The parties have entered three-month occupancy agreements for 10 of the 13 parcels that provide for Sears to pay related real estate taxes and water and sewer charges and allow time for going-out-of-business sales.
Two properties are considered unencumbered, and the balance have liens connected to loan agreements. Funds attributed to the sites that are being used as collateral will help pay down the loan amounts.