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Sears Holdings Corp (NASDAQ:SHLD)’s Turnaround Story Reveals More Challenges Than Opportunities

Boston, MA 08/22/2014 (wallstreetpr) – Sears Holdings Corp (NASDAQ:SHLD) is a retailer under siege, and even its turnaround efforts appear to be doing little to shore up the company’s balance sheet. The company recently conceded that its financial problems have not cooled, even though it hopes they would someday. In its 2Q results, the retailer said it suffered a deeper loss that it did last year, and that happened while revenue failed to improve while costs soared.

Deeper loss

The company reported 2Q loss of $573 million, which compared unfavorably with a loss of $194 million that it suffered in the like quarter last year. Revenue in the quarter was not any source of good news. Revenue dropped 9.7% to $8 billion for the quarter.

According to CEO, Edward Lampert, they believe that Sears Holdings Corp (NASDAQ:SHLD) can still get back on its feet and sprint to profitability. He said that is their main agenda, and they are looking into new ways to cut cost while also focusing the business more as a digital player. It means that the company may have to shed more of its stores to eliminate some of its financial burdens. It has also been said by analysts, that the company may also turn to its real estate properties and obtain loan financing against them. That was something that worked out for the struggling retailer, J C Penney Company Inc (NYSE:JCP), which was able to raise about $2.3 billion through such maneuvers.

Real estate to cash

Furthermore, Imperial Capital’s Mary Gilbert observed that Sears Holdings Corp (NASDAQ:SHLD) has liquid assets that if converted to cash could generate about $5 billion for the company to finance its turnaround efforts. Debt is also not out of option for the struggling business. For example, CFO, Robert Schriesheim, said they were looking for various ways to bolster their balance sheet and to renegotiate with their lenders is one of the issues on the table.

Published by Nicholas Maithya

Nicholas is a Financial Analyst by profession, who enjoys writing about investments, technological developments, business, economics and other financial topics at various financial publications. Join him here on as he endeavors to deliver to you the latest breaking news on the above mentioned fronts. Contact him by email at [email protected] or follow Nicholas Kitonyi @nmaithyak on Twitter.

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