Sears, another iconic American department store chain -- one of the most iconic in the country, in fact -- could go belly up this year. It announced another round of KMart-Sears store closings the other day and has now said it will consider "all options" if its effort to refinance $1 billion fail.
Now, all the big-time finance bubbas here know that if you owe someone a hundred dollars you've got a problem. But if you owe them $100,000 then they have a problem, so Sears may not be dead yet. But man, it's sure starting to take on the stink of a decomposing corpse. Just one walk through a typical Sears store like the one several miles from where I live will tell you that.
"While reiterating his belief that the department store has the right strategy to turn Sears around, Chief Executive Officer Eddie Lampert said should the refinancing â€śnot be fully successful, the Companyâ€™s Board will consider all other options to maximize the value of Sears Holdingsâ€™ assets.â€ť
â€śIf we successfully complete the financing transactions we are contemplating, we will materially improve the financial strength and operating focus of Sears Holdings and provide meaningful reassurance of our viability to our vendors and business partners,â€ť Lampert said.
Sears said its same-store sales dropped between 16 and 17 percent for the first two months of the fourth quarter, or what represents the crucial holiday shopping season."