The transformation into an integrated and member-centric “Shop Your Way” business model is now seven years in the making.
Edward S. Lampert, chairman and ceo at Sears, is looking to talk to partners about acquiring Kenmore and other assets.
A deal could have Sears receiving $1.7 billion, excluding its Kenmore IP asset, which doesn’t yet have a valuation.
The matter involved the retailer’s online support services provider, 7.ai.
The improvement is due in part to the closure of unprofitable stores in 2017, and net profits are helped by a benefit from tax reform.
Even with potential annual cash interest savings of $100M, Fitch still expects the annual cash burn rate to hit $1.2B in 2018.
The chairman said financial maneuvers, if successful, should reassure vendors of the company’s viability.
The company is also hoping to raise another $200M to enhance its liquidity.
Liquidation sales are slated to begin Jan. 12.
Sears plans to build on the success of its new concept stores, but time and money are its two big hurdles.