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Dr Lizardo12/06/2018 4:02:59 am PST

In news regarding failing former US retail giant, Sears:

Revised internal forecasts show that Sears Holdings Corp. will bleed hundreds of millions of dollars more than it expected over the coming weeks, casting new doubt on whether the bankrupt retailer can avoid liquidation.

When the company declared bankruptcy Oct. 15, it filed a budget with revenue forecasts of $241 million for the week of Christmas and $1.93 billion for the two months ending Jan. 12. But an updated budget filed Friday shows only $215 million the week of Christmas and $1.69 billion for the entire two months, almost $246 million less than originally projected.

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. The revised figures were included in documents filed late last week with the federal bankruptcy court handling the case. A Sears representative declined to comment.

“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.”

Even though Sears filed for Chapter 11 a few weeks back, I predicted that probably shortly after the beginning of next year, that Chapter 11 will end up being re-filed as a Chapter 7 bankruptcy and that’ll be the end of the road.

chicagotribune.com