Burning through 2/3 of non-ESL financing in the first month alone.
https://finance.yahoo.com/news/sears-burns-cash-while-betting-110024187.html
8 replies (most recent on top)
Sears and Kmart "SHLD" burnt 5.6 million dollars a day last quarter and showed no slowing this quarter. So from Aug 4 it would have burnt 430 million dollars , this is simply why the banks wanted to go straight to liquidation and only agreed after ESL added money to the loan for BK. So people thinking that this will come out of chapter 11 are not realistic it will go to complete liquidation.
@zsp exactly, then after he gets those parts he could care less about restructuring. The company is done
Maybe ch 7 will be sooner than everyone is predicting
He’s trying to force the sale of Kenmore and profitable areas of Home Services.
$220M cash burn out of a $300M loan in the first month!.. Jeebus, Sears has a spending problem
My opinion of this is, if Eddie just gives the 300m to Sears, then it will happen. If Eddie gives the loan and doesn't do it as a secured loan, then there's a 2/3 chance it will be approved. If Eddie demands to make it a secured loan, therefore pushing non-secured lenders further down the payment list, then it's even odds that it will be approved in time. Even then, the chance that there will be enough money to carry them past Christmas is scant. Overall, I give Sears surviving to Spring is maybe 10%.
sorry , it does. Thanks for the info
That link leads to nothing
If the company can't work out a deal with other creditors, then they will be lucky to make it to Black Friday.
Look for mass layoffs fast, since maintaining the current burn rate is going to wipe them out fast.