How Much Cash Does Sears Have Left?
Sears Holdings (NASDAQ: SHLD) is burning cash like almost never before. According to a filing, Sears appears to have gone through $200 million in a single month.
After borrowing $100 million from Sears CEO Eddie Lampert's ESL Investments Fund at an interest rate of 11%, the retailer took on $40 million on October 18, and an additional $60 million on October 25. While it's not out of the ordinary for retailers' working capital to go negative as they stock up for the holiday season, the speed with which Sears seems to be bleeding through cash struck some investors as remarkable and is adding to concerns about the company's potential bankruptcy.
Despite operating at a loss since 2010, Sears has managed to stay afloat by selling off assets like the Craftsman tool brands and 235 stores to Seritage Growth Properties (NYSE: SRG), but same-store sales continue to fall, losses are mounting, and the stock is at all-time lows. Investors are certainly justified in worrying about Sears' cash balance -- but just how much cash does it have left?
Source: Fool.com
