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STRUGGLING US CHAIN Sears has struck a leasing deal with European fashion retailer Primark, which trades in Ireland as Penneys.
Sears is looking to raise more cash, and also announced today that it is planning a rights offering that may raise up to $625 million.
The lease agreements are for seven stand-alone stores in shopping centres.
Sears will retain a significant presence at six of the locations.
Primark will lease about 400,000 net square feet of retail space in the Northeastern U.S. and is expected to receive the space over the next 12 to 18 months.
Sears has been cutting costs, reducing inventory and selling assets to return to profitability. Its biggest albatross remains its stores, which critics say are outdated and shabby.
Chairman and CEO Edward Lampert combined Sears and Kmart in 2005 about two years after he helped bring Kmart out from under bankruptcy protection. The company has since faced mounting pressure from nimbler rivals like Wal-Mart Stores and Home Depot.
Sears is also facing broader structural issues. Like other stores catering to the low- to middle-income customers, Sears is grappling with a slowly recovering economy that’s not benefiting all Americans equally.
It’s also trying to catch up to customers who are steering clear of stores and shopping online.
Sears Holdings Corp. said the rights offering will allow its stockholders to buy up to $625 million senior unsecured notes due 2019 and warrants to buy shares of its common stock. It anticipates up to $625 million in proceeds if the offering is fully subscribed and closes as planned.
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European fashion retailer? Isn’t Primark originally an Irish fashion retailer that has expanded in UK and Europe?
Originally yes but now owned by Associated British Foods
Yes started by Arthur Ryan in 1969 expanded into the UK in 74, it’s a bigger company outside Ireland, but sticking to its roots.
Skip geography did ya? Ireland is part of Europe.
Who is owned by the Westin family from Canada. Brown Thomas is also under the same roof as Penneys.
* Weston
Ms.Weston is from Dublin.
which makes it European .
She owns the Brown Thomas Chain,which was a gift from her husband for her birthday. Hence the reason why the Canadian Flag is flown over Brown Thomas in the Cork shop anyways.
Pennies Hun!!! Two dollars.
The U.S is of no use to me. They need to open one in finglas. Then il be happy
There is one in blanch it’s 10 minutes away !
If you drive maybe. I dont.
Have you ever heard of a bus?
It’s pretty handy to get the bus into the city from Finglas no?
Penny’s is the busiest shop in Dundrum shopping centre,
#FunFacts
Isn’t it great, with a little slave labour and a lot of sweat shops what can be achieved. Well done
Well said, hoped at least one person would post something supporting the people working excessive hours at very low wages so we might enjoy throwaway clothes!
You have restored my faith!
Penneys is not as cheap as it use to be. Prices have gone up a lot in the last 3 years. The summer shorts they had for men were €9 in 2012 this year similar shorts cost €14.
‘Penneys is not as cheap as it used to be’..
You could say that about anything in this country!!
Finally, I can start buying my socks in bulk again.
I wonder will Enda get the gig to cut the tape like he did in Germany?
Can someone explain why comments are allowed on some articles and not on others?
Subjudicy, look it up, or the Journal don’t want to get in trouble with their SF overlords!
Something to do with charges being pressed against somebody or a case still ongoing. Comments are closed for these stories because something could be said that would damage the case… I think
Yeah I did notice the comments were disabled for alot of Sinn Fein articles..
Ya can’t beat Penneys!
Make a mint
P
Bring it on,you can’t get decent clothes here !!!
Penny’s is crap, and so is Sears…..won’t last… Wash it once and it falls apart, so..you get what you pay for
I go to Barcelona to find Penneys . There they are known as Primark , they have also opened beside Galleries Layfiette in Paris –very posh address.
Yes I love this store never miss a chance to shop when I am in Ireland.
have your say