Seritage Growth Still Owes Berkshire Hathaway $1.44 Billion
Seritage Growth Properties (NYSE: SRG) started its life when it was spun off from Sears Holdings, a now-bankrupt retailer that owns the iconic brand names Sears and Kmart. It was a rough start that has only gotten more difficult. And while the business is getting stronger, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) still has a $1.44 billion claim on the real estate investment trust (REIT).
Both Sears and Kmart had been struggling to resurrect their businesses, fix their merchandise mix, and attract customers. In order to free up some cash for that effort, Sears Holdings spun off Seritage Growth Properties, which bought a collection of the retailer's stores.
That's not an odd beginning at all, and there are a large number of REITs that were formed the same basic way. Four Corners, for example, was spun off from Darden Restaurants not too long ago.
Source Fool.com
