Lately not a day seems to pass without some materially adverse news hitting a prominent retailer, or the broader space, and today it is perennial default candidate Sears to crash at the open after issuing a "going concern" in its latest 10-K, warning overnight, wrning “substantial doubt” about its ability to keep operating, raising fresh concerns about a company that has lost more than $10 billion in recent years.
“Our historical operating results indicate substantial doubt exists related to the company’s ability to continue as a going concern,” Eddie Lampert's company said although always eager to put a positive twist on the worst of news, the company added that its comeback plan may help alleviate the concerns, “satisfying our estimated liquidity needs 12 months from the issuance of the financial statements.” Of course, the question is what happens when vendors start demanding cash on delivery as concerns about SHLD's liquidity concerns continue to grow.
Sears’s stock fell as low as $7.30 in premarket trading before rebounding modestly . It had been down 2 percent this year through Tuesday’s close.
The disclosure comes after more optimistic signs from the company, which has been working on a turnaround under Chief Executive Officer Eddie Lampert. As Bloomberg notes, Sears posted a narrower loss than predicted in the fourth quarter, and it has pledged to lower its debt burden and cut annual expenses by at least $1 billion.
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I have no pity for these companies. They all got to big for their "britches". Open more stores and prices just keep going up. Close all of them. Bring back the small town shops and mom and pop stores.
ReplyDeleteWhat happened to making America great? These companies were a cornerstone at a time when Trump declared we need to return to. Well?
ReplyDeleteYeah. Right.
5:26, You can't be serious. You want to blame Trump, who's been in office less then 2 months for the failure of these businesses. You Liberals are sick in the head, seriously.
ReplyDeleteThis is the very reason the man got elected, because the Liberal Party destroyed businesses with your impact fees and demands for $15.00 an hour wages.
I'll just leave it at that.
Who's making $15/hr at sears & Payless? Besides the general managers? Lol.
DeleteOk, so what is being done to fix this? Absolutely nothing, that's what.
President Trump has brought millions of jobs back to America since he was Elected, but these failures at Sears were in play for years long before President Trump came on the scene. Frankly, if he wanted to, Trump probably could have saved Sears but as President he has too many more important things to do, but as he gets his people in place (if the Senate would ever confirm them) he will bring back even more jobs. Give him a chance! It's only been two months, you Liberal Loosers!
ReplyDeleteMore important: play golf and cut budgets. Major eye roll.
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