Important Retailer Updates: Sears, JCPenney, and Things Remembered
April 8, 2019 | The Toy Association is updating members on new information related to Sears, JCPenney, and Things Remembered.
The department store chain announced it will open three small-sized stores, called “Sears Home & Life,” in time for Memorial Day weekend in Anchorage, AK, Lafayette, LA, and Overland Park, KS. The stores will range in size from 10,000 to 15,000 square feet compared to the average Sears store that is 155,000 square feet. The stores will sell large and small kitchen appliances, mattresses, and connected home products. Sears’ bankruptcy documents and a calendar of upcoming deadlines are available on Prime Clerk’s website.
After rattling the markets with confusion over debt collateral that prompted fears of a technical default, analysts at Moody’s Investor Services said in a report they expect the retailer to close additional locations beyond the previously announced 27 store closings and will likely need to take additional action. The retailer is expected to focus on its stores located in 100 malls that already have multiple anchor vacancies. JCPenney, which has 846 stores across the country, has already indicated that it is looking at layout options and reducing space in some stores. The retailer has approximately $2 billion in available revolving credit and cash.
Things Remembered has filed for Chapter 11 bankruptcy protection as part of its plan to be acquired by Enesco, a giftware, home décor, and accessories company. To facilitate the sale, Things Remembered filed for bankruptcy and is seeking court approval for a severance and outplacement program to support impacted employees. Enesco intends to operate the company’s online, direct mail, and its business-to-business retail operations. It also will keep a “portfolio” of stores open under the Things Remembered brand. Things Remembered currently operates about 400 stores. Things Remembered bankruptcy documents are available on Prime Clerk’s website.
The Toy Association will continue to monitor developments in these matters and will share relevant news with members as quickly as possible. Questions may be directed to Paul Vitale, executive vice president of finance and operations at The Toy Association.