Lease Guarantees
Between 1995 and 1997, the Company sold or spun off a number of subsidiaries, including Bob’s Stores and
Linens ‘n Things, each of which subsequently filed for bankruptcy, and Marshalls. In many cases, when a
former subsidiary leased a store, the
Company provided a guarantee of the former subsidiary’s lease obligations for the initial lease term and any
extension thereof pursuant to a renewal option provided for in the lease prior to the time of the
disposition. When the subsidiaries were disposed
of and accounted for as discontinued operations, the Company’s guarantees remained in place, although each
initial purchaser agreed to indemnify the Company for any lease obligations the Company was required to
satisfy. If any of the purchasers or any of the former subsidiaries fail to make the required payments under
a store lease, the Company could be required to satisfy those obligations, and any significant adverse
impact of COVID-19 on such purchasers and/or former subsidiaries increases the risk that the Company will be
required to satisfy those obligations.
As of March 31, 2022, the Company guaranteed 68 such store leases (excluding the lease guarantees related to
Linens ‘n Things, which have been recorded as a liability on the unaudited condensed consolidated balance
sheets), with the maximum remaining lease term extending through 2030.