Keep seeing this stated in many of the articles about SHLD's bankruptcy.
"The fallen retailer said Monday in its new bankruptcy protection filing that it sees the potential to leave as many as 400 stores open after its reorganization in the courts. Sears (SHLD) notes that these 400 stores are profitable on an EBITDA (earnings before interest, taxes, depreciation and amortization) basis."
EBITDA is an accounting method that is very subjective. It is not recognized under GAAP nor by the SEC. Even Warren Buffett dismisses it for being heavily flawed. EBITDA has been touted for years by SHLD as a key metric for gauging profitability, yet SHLD is now bankrupt. It is a misconception that 400 stores that are profitable on an EBITDA basis can sustain the company; SHLD is doomed.