Creditntell / F&D Reports Releases Future Outlook Analysis on Sears Holdings Corp.

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Report Provides Objective Insight into Sears’ Performance and the Potential Risks in the Near and Mid-Term

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It has now become critical for lenders, landlords and trade creditors to understand Sears' ability to meet its short-term capital requirements before making decisions to extend or renew credit.

Industry-leading credit consulting firm Information Clearinghouse, Inc. (ICI), through its Creditntell and F&D Reports divisions, has published a Future Outlook Analysis on Sears Holdings.

When Kmart and Sears merged in March 2005, the combined operations were relatively healthy, with an EBITDA margin in the high single digits and over $1.00 billion in annual free cash flow. In the years that followed the merger, it was hard to discern the exact nature of the Company’s retail strategy. The only consistent business practice was a lack of investment in the stores. Operations eroded significantly from 2005 through 2013, which is when Sears reported the worst operating results in its history. Through the first three quarters of 2014, the Company has not shown any signs of a turnaround. In order to plug the cash drain, Sears has been spinning off and/or selling assets, resulting in approximately $4.50 billion in additional liquidity over the past three years.

In light of continued operational erosion and accelerated cash burn, Creditntell / F&D Reports has published a Future Outlook Analysis, which analyzes the Company’s estimated liquidity over the next 12 months to help our subscribers better understand the credit risk associated with doing business with Sears Holdings. Please email the contact listed if you would like a copy of this analysis.

Commenting on the Sears Future Outlook Analysis, Lawrence Sarf, CEO of Creditntell/F&D Reports, stated, “Sears Holdings continues to be the most intriguing story in retail. With cash burn exceeding $1.00 billion, it has now become critical for lenders, landlords and trade creditors to understand the Company’s ability to meet its short-term capital requirements before making decisions to extend or renew credit. Going beyond our cash flow model, our comprehensive and unbiased analysis considers the Company’s store-closing activity, asset base and most importantly its access to capital in an effort to help our subscribers make the best informed credit decision possible.”

Information Clearinghouse, Inc. (publisher of F&D Reports, Creditntell, and ARMS) is a leading retail credit consulting firm specializing in the analysis of public and private companies in numerous retail segments. The focus of its analysis is to deliver the key intelligence today’s busy credit executive needs to make a highly informed decision without sifting through pages of non-essential data. To learn more, visit our websites at http://www.fdreports.com, http://www.creditntell.com, http://www.fdarms.com.

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Dennis Cantalupo
Creditntell
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