Sears to sell off most of its Hawaii stores
- By Kristen Consillio kconsillio@staradvertiser.com
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Nov. 27, 2018
Sears’ Hawaii stores are on the auction block.
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Sears’ Hawaii stores are on the auction block.
Sears Holdings Corp. listed five Hawaii outlets — at Pearlridge Center, Windward Mall, Prince Kuhio Plaza in Hilo, an appliance store at Ala Moana Center and an outlet at the Queen Kaahumanu Center in Kahului — among 505 of the company’s most profitable locations to be sold or auctioned off as part of its bankruptcy, according to court documents.
The venerable department store chain, based in Illinois, has drastically reduced its number of stores even before filing for Chapter 11 bankruptcy protection Oct. 15 as it struggles to stay relevant in a retail market full of big-box giants, including Walmart, Home Depot and Best Buy, competing for Sears’ core appliance sales. The retailer has taken a substantial hit year after year as the discount chains, as well as online retailers, take a larger chunk of the market.
The company that owns Sears and Kmart announced earlier this year that it would shutter 142 stores by year’s end, adding to the closure previously announced of 46 unprofitable locations. The Lihue Kmart shut down in early September, following the closure of a Kailua-Kona location in August. The last Kmart store on Oahu, a 135,000-square-foot location in Kapolei, closed in October 2017.
Sears, which started as a mail order catalog in the 1880s, began opening stores in 1925 and expanded quickly throughout the 1950s to 1970s. The court filings follow the most profitable weekend for retailers, which started with Black Friday — the day after Thanksgiving and traditionally the biggest shopping day of the year.
It is unclear whether the company will find a new owner to continue operations.
“Hawaii has always been a profitable market, so whatever they do, you got to think it’s a very lucrative market for whoever’s going to buy it,” said Honolulu retail analyst Stephany Sofos. “Sears is dated but not in the appliances area. People really feel comfortable buying Sears products. There is a very big local demand for Sears. Their products are serviceable so if they break down they are easy to service, so people like that.”
The company will accept a single bid or multiple offers and is also considering bids from buyers with intentions to liquidate. The deadline for an initial bidder is Dec. 15, and Dec. 28 for other offers. An auction has been scheduled for Jan. 14.
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