Thursday, January 05, 2017

Crony capitalism update: Sears Holdings closing 150 stores, selling Craftsman

Six years ago Illinois Governor Pat Quinn, a Democrat, signed a tax break deal to prevent Hoffman Estates' based Sears Holdings, which owns Kmart and of course Sears, from leaving the state. Earlier that year Quinn signed into law a massive income tax hike, a so-called temporary one that was not made permanent only because Republican Bruce Rauner defeated him in 2014.

Where was my tax break?

Almost immediately after Quinn signed the crony capitalism tax break for Sears Holdings, they closed a bunch of stores. And they closed some more outlets in 2015 and last year too.

Yesterday Sears Holdings announced it is closing 150 more stores, including two in Illinois.

This morning Sears Holdings--which, by the way is struggling, did you know that?--announced it was selling its prestigious Craftsman tool line.

Heckuva job, Quinn, heckuva job.

Also five years ago, Quinn handed out tax breaks to Mitsubishi Motors. In 2015 its Illinois plant, its only one in the United States, closed.

1 comment:

OldSouth said...

Quinn only delayed the inevitable. A dispassionate look at the realities of Sears' condition would have led sane souls to not engage in a tax bailout. Instead, all would have been better served by advising Sears to liquidate while they could. Craftsman was one of their few respected brands, yielding some cash. Otherwise, the future trustees will be in the position of disposing of large numbers of deteriorating retail properties.

Our local K-Mart was 're-purposed' and space is now occupied by a YMCA and a defunct hipster church. Both of which generate sooo much economic activity and sales tax receipts for the county--not!