Would you lend money to Sears today? If yes, what would be your terms?
5 replies (most recent on top)
For a discount or insider information on prime seritage stock maybe.
If I were in the position of lending money out to companies, I wouldn't lend anything to Sears. All the good real estate is gone, most of what's left is not valuable and would be difficult to liquidate due to the poor locations of these stores (underperforming malls, stores located away from major shopping hubs, etc.), condition of the building if they chose to keep it/sell it with the land, the demolition costs including asbestos abatement if they chose to knock it down, easements (big issue for stores located in malls or shopping centers), so if the real estate was the collateral, the creditor would be surely taking a loss.
Kenmore, which is the last major asset, is probably going to go to Eddie. So what liquid assets are left to be able to lend money on secured terms? There are none.
Absolutely not.
@zmf agreed... yet, some still lend us money. I am puzzled why
What kind of question is that? Like lending money to a crackhead.