In a Gamble for Cash, Sears Plans to Sell Stores

[Eugene]

Source: New York Times

February 23, 2012, 8:20 pm Mergers & Acquisitions
In a Gamble for Cash, Sears Plans to Sell Stores

By PETER EAVIS

Sears Holdings moved on Thursday to allay fears that it could run low on cash this year, announcing plans to sell stores in transactions that the company says could raise nearly $800 million.

But the deals also highlight the major challenges that Sears faces as it tries to stop a multiyear slump in its operations, analysts said.

Sears may be giving up its most profitable stores in exchange for a quick cash infusion today. In one of the transactions, Sears also expects current shareholders to foot the bill, potentially leaving them more exposed to the troubled retailer.

“As a matter of fact, spinoffs like these could leave Sears with a very unprofitable core Sears U.S. business,” said Mary Ross Gilbert, an analyst with Imperial Capital, a brokerage firm.

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Read more: http://dealbook.nytimes.com/2012/02/23/in-a-gamble-for-cash-sears-plans-to-sell-stores/

[msongs]

1. Mitt Romney is that you? nt

[iemitsu]

5. haha, that was my initial response too.

[NV Whino]

2. Sears still has stores to sell?

Who knew? I haven't seen a Sears store for eons.

[Po_d Mainiac]

6. k-Marts n/t

[liberal N proud]

3. Selling all to give the shareholder an increase in their share

That is all that matters in business today.

[xchrom]

4. To who? Who's gonna move into those spaces? Nt

[FarCenter]

7. Eddie Lampert's objective in the KMart-Sears merger was always to unlock shareholder value

in the underappreciated real estate holdings of Sears.

But he didn't move fast enough, and got distracted by attempting to turn around the businesses instead of selling off the real estate.

Now its worth a lot less. He should have sold off the real estate in 2007.

[barb162]

8. This company is taking forever to die off.

One of the biggest companies in the world in the 1950s and before. They keep hiring schmucks for top management.

[mbperrin]

9. #1 retailer in the world for a century. Done in by quick-buck killers.

Eventually, they'll have all of us living in caves fighting over hundred dollar bills, as if they mattered.