American Sears in major financial difficulties

American Sears in major financial difficulties

In its latest annual report filing, American department store chain Sears doubted its ability to keep operating, which sent the stock plummeting.

 

Huge debt

Sears’ stock value dropped 15 % after the report, because of concerns it would not be able to survive. The company did try to alleviate worries, saying that its recovery plan, which helped boost share price 60 % since February, will help it survive for at least another twelve months.

 

The chain of department stores will continue to lower debt, which is at 10 billion dollar (9.2 billion euro), and cut costs. CEO Eddie Lampert has been the main investor, putting up 1 billion dollars (920 million euro) over the past year alone, but he also hopes to cut 1.5 billion dollars (1.4 billion euro) in costs and pension costs, on top of store closures and the sale of real estate and divisions.

 

A spokesperson says these incisive measures are necessary to improve the company’s ability to survive and keep 140,000 people employed. Rating agency Fitch Ratings said last year that Sears was at risk to go bankrupt.

Questions or comments? Please feel free to contact the editors


Gerelateerde items

Shoptalk Europe: prices go up at midnight

21/09/2017

(advertorial) Shoptalk Europe, the event for retail and ecommerce innovation held 8-11 October 2017 in Copenhagen, covers trends, technologies and business models reshaping how consumers discover and shop in an age of digital disruption.

EuroCommerce: protectionism, Europe’s greatest challenge

15/09/2017

(Content provided by EuroCommerce) According to EuroCommerce Director-General Christian Verschueren, the sector faces many challenges due to a rising tide of protectionism worldwide and within Europe.

Last ten days for cheaper tickets Shoptalk Europe

14/09/2017

(advertorial) Shoptalk Europe (8-11 October in Copenhagen) is the new event for retail and ecommerce innovation. It covers transformational trends, technologies and business models reshaping how consumers discover and shop in an age of digital disruption.

"EU has to define eCommerce's boundaries better"

13/09/2017

Dutch European Parliament member Marietje Schaak feels the European Commission should create a better framework for digital trade in and with European member states. Otherwise, major internet companies will decide the standards themselves, she fears.

Europe wants legal framework for franchisees

13/09/2017

The European Parliament has accepted the “The functioning of franchising in the retail sector” study, which lists several solutions to strengthen a franchisee’s position.

Google appeals European fine after all

12/09/2017

Despite earlier indications that Google would just alter its Google Shopping approach to comply with European legislation, it has now decided to appeal the monster fine.

Back to top