advertisement

Sears reassures workforce, looks at next steps

Sears Holdings Wednesday issued an internal memo meant to reassure Hoffman Estates employees while still reiterating that the retail giant is committed to looking at all options after legislators failed to agree on tax breaks for the company.

While leaving the door open for a possible move out of state, Sears executives in the memo held out hope for eventual approval of the tax breaks the company is seeking and called the failure of the legislators to act on the issue Tuesday “another step in this process.”

Sears is seeking an extension of existing tax breaks with Hoffman Estates and says it has offers of tax incentives from other states. The company on Tuesday reiterated its intention to decide this year whether to leave Illinois. Lawmakers, meanwhile, are not scheduled to meet again until January.

Progress toward a deal broke down over tax breaks for the working poor that were included in the same legislative proposal.

“We received solid support for our portion of the legislation and are hopeful that the unrelated issues, including the earned income tax credit provision, will be resolved in short order by prudent leadership,” Sears’ memo to employees said.

“You should know that our portion of the bill was endorsed on the record by representatives of both Hoffman Estates and District 300. The fight is not over, and we continue to work toward a resolution,” the memo said.

While the process continues, Sears said “a final decision has not yet been made. Our commitment to you remains the same: to be thorough in our review of all of our options.”

District 300, which would get more property taxes from the Sears property if the tax breaks are allowed to expire, protested strongly at first but this week signed on to a House version of the tax break deal.

While hoping for a breakthrough in Springfield, Sears still must maintain stability in Hoffman Estates as it faces year-end holiday sales and struggles to keep its bottom line from bleeding further.

Sears maintains it has been wooed by at least 19 states, and The Columbus (Ohio) Dispatch reported Nov. 18 that Ohio Gov. John Kasich talked with Sears CEO Louis D’Ambrosio in an ongoing attempt to lure the company to move. But the story indicated that Kasich “doubts Sears will leave suburban Chicago.” Kasich also alluded to his conversation with D’Ambrosio that indicates Texas and Ohio still are in the running with Illinois as the home of the headquarters.

The Ohio governor’s deputy press secretary, Connie Wehrkamp, and Jobs Ohio economic development spokesman Marlon Cheatham both declined to comment. Texas governor Deputy Press Secretary Josh Havens also declined to comment.

The company now has to walk a fine line between its threat to move and its efforts to reassure its 6,100 Hoffman Estates-based employees, who might wonder if they’ll have jobs as they face the end of the year in a tough economy.

“They’re going to keep looking at their options, since it’s obvious that Illinois is fading away,” said John Melaniphy Sr., retail analyst and principal with Melaniphy & Associates in Chicago.

A possible scenario is relocating Sears’ top executives and select department heads and moving them to a business-friendly state like Texas, said Melaniphy.

However, moving is costly, Melaniphy pointed out.

Besides severance packages for employees and substantial moving costs, the property in Hoffman Estates would become an economic drain, Melaniphy said.

“Who would take that space? There’s no one standing in line for it,” Melaniphy said.

District 300 putting up fight over Sears tax dollars

District 300 launches assault on Sears tax break extension

Hoffman Estates passes resolution to keep Sears

About 3,000 in District 300 protest Sears tax break

Dist. 300. Hoffman Estates still at odds over Sears

Carpentersville, Dundees back Dist. 300 in Sears tax break fight

District 300 community plans protest in Springfield

Sears compromise involving District 300 brewing?

District 300 presents own Sears plan

Hoffman Estates confident in Sears fight despite D300's Springfield visit

Sears deal talks creep forward

It’s crunch time for a Sears incentive plan

Sears deal now tied up in bigger tax package

Parent questions Dist. 300 field trip to Springfield

Lawmakers could start debating Sears' future today

Companies foot bill for Dist. 300 trip to Springfield

Debate begins on tax breaks for Sears, but deadline looms

Sears deal getting put off?

Hoffman mayor asks lawmakers to help keep Sears

Lawmakers, Sears, leaders still hoping for deal

Sears tax deal before lawmakers again

Tentative Sears deal emerges $11.5 million a year for Sears, $5.9 million for District 300

Sears remains part of big tax breaks deal

Sears proposal put in writing

House panel OKs tax breaks for Sears

Kane County joins Sears deal opposition

Lawmakers adjourn without Sears deal

Article Comments
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.