Is Sears Mortgaging the Future of Its Retirees?

The latest financial maneuvers by Sears Holdings (NASDAQ: SHLD) are being spun as a way to give the failing retailer some breathing room to get its house in order, but in reality, they indicate just how dire its predicament is. Worse, they could put the retailer's retirees at even greater risk.

Sears announced it was taking out additional loans totaling $607 million, with the proceeds being to be used to make a payment towards its pension obligations and for general corporate purposes. It also negotiated an extension to an existing loan that will see its repayment stretched out to next year, and possibly as far as mid-2019.

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Source: Fool.com