Holiday Forecast Adds to Doubts on Sears’ Future
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. -- Bloomberg