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Sears Holdings (SHLD): A Brief Update from the Bridge of the Titanic – Evercore

It is difficult to paint a scenario where Sears Holdings Corp (NASDAQ:SHLD) actually returns to free cash flow (FCF) neutral or generative state when its sales continue to decline and footage shrinks, according to analysts at Evercore ISI.

Evercore Partners Inc. (NYSE:EVR) ISI analysts Greg Melich and his colleagues in the reported titled "Sears Holdings: A Brief Update from the Bridge of the Titanic" added that they may be optimistic under the assumption that Sears Holdings burn rate improves from an average of $(1.5) billion over the past three years to only $(1) billion this year.

The analysts also noted that the $2.7 billion cash inflow from the sale of real estate eliminated the possibility of a liquidity event that they thought would otherwise happen in the second quarter.

According to them, if Sears Holdings reduces its 2018 debt maturity from $2.25 billion to...


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