On Thursday, Sears reported a revenue loss of 23.5 percent in the last quarter, with U.S. sales down 4.4 percent.
One bright spot for the parent company of Sears and Kmart is its real estate. Sears has proposed creating a real estate investment trust that would buy hundreds of its stores, and then lease them back to the company. That would give Sears a cushion of cash.
“It doesn’t seem like there is going to be a ninety-degree turn on a dime for the fortunes of this company,” says David Tawil with the hedge fund Maglan Capital. “It’s going to need to buy more time by having additional liquidity.”
Click the media player above to hear more.
News and information you need, from a source you trust.
In a world where it’s easier to find disinformation than real information, trustworthy journalism is critical to our democracy and our everyday lives. And you rely on Marketplace to be that objective, credible source, each and every day.
This vital work isn’t possible without you. Marketplace is sustained by our community of Investors—listeners, readers, and donors like you who believe that a free press is essential – and worth supporting.