Lampert's Latest Loan Won't Save Sears Holdings
While Sears Holdings' (NASDAQ: SHLD) agreement with Amazon.com (NASDAQ: AMZN) to sell Kenmore brand appliances on the e-commerce leader's site sent the retailer's stock soaring, shares were already moving higher after it was reported that Chairman and CEO Eddie Lampert had thrown another $200 million loan Sears' way. Investors were wrong to bid up the stock in both instances.
Online sales are only a small portion of the total appliance market, and because the Kenmore brand has lost so much of its leadership and value, there's little chance Sears will make any appreciable dent in its revenue problem, even if they are sold on Amazon. Worse, the loan that was extended to Sears indicates just how bad the situation is at the department-store chain. Both events are lifelines tossed Sears' way, but they'll each likely fall short of saving the retailer.
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Source: Fool.com
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