Sears Asks For And Receives Extension On Loan Repayments

FILE - In this Friday, Nov. 9, 2012, file photo, a customer walks towards a Sears store in Hialeah, Fla. On Thursday, Aug. 21, 2014, Sears Holdings Corp. is scheduled to report quarterly financial results before the market opens. (AP Photo/Alan Diaz, File)

Sears stores have been facing a very difficult time to say the least. They are not performing well at all, and matters have been made worse by the fact that the company is just not that popular with Millennials. Now, CNBC reports that Sears has requested an extension on the loans that it has taken out with certain creditors. Those loans had a payback date of July of this year in the beginning, but now the company has received a two year extension on this original plan. They have received it.

The total loan values that it has consolidated is about $320 million dollars. They are real estate loans that have been pushed off for two years so that Sears may have the ability to better repayment them going forward. The loans are backed up by existing Sears stores that are being used as collateral.

Some are wondering if these last ditch types of plans are going to do anything to help save the company. They look at the continuing stores that come out about Sears regarding its troubles running the operations that it already has in place. They wonder how the company is possibly going to afford to repay the loans that it already has out even if they do attempt to back up those loans with real estate.

Sears has announced a number of Sears and K-Mart stores that it is closing all throughout the country this year. That number is near seventy, and it is possible that they will close even more as the year goes on. The company insists that it is only doing this as a way of cutting away unprofitable stores and re-focusing its mission. However, many believe that this is nothing more than the last gasps of a one famous company.

The only people who have been making money on sears in recent years have been those who have been betting against it. Those who have shorted the stock or bought put options on it have done pretty well. However, the long-time holders of the stock have watched as their planned investment has simply blown up in their face. It is a scary time to be a holder of Sears stock or any retail company for that matter. It is definitely something that people need to spend more time thinking through if they are serious about making some money for themselves and their future.


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