December 6, 2018
Even as Cyrus Capital Partners and an Eddie Lampert hedge fund prepare a joint bid for Sears Holdings, the bankrupt retailer is in worse financial straits than previously thought. Bloomberg News reported that revised internal forecasts point to lower revenue forecasts for both Christmas week and the two months that end Jan. 12, 2019.
Sears also now expects negative operating cash flow in the weeks leading up to Christmas and net cash flow before financing of minus $434 million for the 13 weeks through Feb. 16, Bloomberg reported. The revised figures were included in documents filed late last week with the federal bankruptcy court handling the case.
“There’s no place in the world for a retailer who can’t produce cash-flow during Christmas,” said Noel Hebert, a credit analyst who covers Sears for Bloomberg Intelligence. “It’s very difficult to envision a scenario where liquidation isn’t the end game.”
For comments, questions or concerns, please contact Paul Bubny