TROY, MI-Kmart is getting ready to sell the 115,000-sf Sheffield office building,located across the street from the embattled discount store company, to the highest bidder as part of its bankruptcy maneuvers. A company based in Southfield, HTC Global Services, has put in a bid to buy the building for $7.3 million, says Laura Mahle, a Kmart spokeswoman.
However, the retailer will wait until Nov. 27 to complete the sale, just in case a higher bid comes in. The sale would be included in court appeals on Dec. 11.
However, if more money is offered by another company by Nov. 27, Mahle says, an auction will be held Dec. 3.
The building on Big Beaver Road (16 Mile) was built in 1973 and purchased by Kmart in the early 1990s, but hasn’t been occupied by company since 2000, Mahle tells GlobeSt.com.
“It’s now about 15% occupied with tenants,” Mahle says. “Traditionally the building had been used by various Kmart departments, but it was always just considered an overflow to the company’s headquarters. For example, at one point the real estate division of Kmart was run from Sheffield.”
Penske Auto Parts, which shared automotive repair center space with many of Kmart’s stores, also held offices in the Sheffield. Penske is also no longer in the building, Mahle says.
She adds in terms of the bankruptcy, getting rid of the building just makes sense.
“We’re trying to cut down to the core assets of the company, and the Sheffield is just not a core asset,” Mahle says. “When the new owner buys the complex, the current tenants can renegotiate their leases.”
A total of 284 Kmart stores across the US will be liquidated to try to garner up extra cash to pay creditors. Many stores have already closed in the metropolitan area, and other areas, including 30 stores in Texas and another 20 in Illinois.
Kmart has been fighting rumors that a list of hundreds more store closings is being passed around the company. However, the company claims that no list exists, and that no more stores, other than those above, will be closed until after the holiday season.