Will Sears’ real estate play raise enough cash?

Sears announced the sale of several mall anchors as well as hundreds of sites occupied by franchise stores. The question debated at RetailWire is whether it’s “too little, too late”:

Sears lost $2.4B for the quarter and over $3 billion for the year on “continuing operations.” (I don’t have the expertise to figure out how they arrived at their EBITDA results.) They are clearly bleeding money and have passed the point where they can simply leverage their real estate and other assets for strategic reasons.

Now the company is in survival mode, and being pressured every day by the credit community. Short-term investors may like the results in the past month (doubling since hitting bottom), but it’s hard to figure out how Sears addresses its biggest need, which is to confront the outdated condition of its stores.


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