There is no way even if they could monetise all their assets they get out of this- every quarter they shut more stores but ever quarter the results get worse not better- I doubt there is a true profit making store in the country.
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the losses have to be made up somewhere- when they announce a loss of $750 million thst is real money that has left the organisation - its not paper money- as one poster said i guess they have used up the debt loan to pay for those losses but are now running out of credit. I think it would take them ages to cut a deal to sell off the rest of the real estate and that would be clawed back in a bankruptcy plus seritage is struggling to process and reclaim the ones they have- the kcd brands they cant get anything of the proceeds so how do they raise money- no one will lend them anymore, i think eddie is just aboiut tapped out, the inventory is worthless, sears home services and innovel would mayeb buy them a quarter but i just don't see how they can fund themselves beyond the first quarter. in the meantime as someone said here they will lose maybe $1 billion in the 4th quarter and will need potentiallhy $3 billion to get to next christmas - where are the funds coming from?
they only has $178 million of the recolving credit facility left and a lttile over $200million of cash left - they are nearly half way through the 4th quarter i expect they have burnt through all of that and we will hear of an asset sale or maybe another eddie loan soon- cannot get through the 4th quarter without raising capital. since the 3rd quarter anouncment there have been 6 weeks of the 4th quarter so losses will now be circa another $350-$400 million on TOP of the $750 million losses announced. Unreal.
The issue is that even if Sears could survive until the store base got done to the profitable ones - the number of stores would be so low that they could not support the debt burden. In the meantime to get to that number of stores the losses will bankrupt the company so it's a loses lose whichever way. $ 700k ain't going to cut it- the reality is by the time you have adde in head office overheads etc your store will also be losing money.
For what it is worth, my store is up $700k for the year, but we're not "profitable" per store leadership. Minimum wage goes up on January 1st; wonder if all stores in the state will fold in response...
Well the problem is It ain't about how much Sears's loses anymore, they can't lose money they don't have... when they lose billions per quarter and year, at this point that's our money, they tax payers, we are the ones who will eat it at this point. Sears could care less now if they lose 1 billion or 100 billion, as long as seritage gets to keep the good properties...
Agree- kcd brands they don't own- even if they got $2 billion for real estate the money would be gone in 2 quarters or so. Inventory is worthless as is home services. Might get $500 mill for innovel but that cash gone in less than 8 weeks at current burn rate. Can't see it surviving another year. Wasteful to do so.