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The holiday season is not likely to bring joy to Sears Holdings.
On Monday, Sears revealed it drew down the last $60M of the $200M credit facility it had obtained Oct. 4. And the rate at which it spent its latest cash infusion has caused concern among both shareholders and suppliers, Business Insider reports.
Sears has struggled with the shift to e-commerce and earlier this year said it would be cutting $1B from its books through asset sales. In the last quarter, Sears lost $251M. The company reported a $2.2B loss for all of 2016.
In an effort to offset these profit losses and renew supplier and shareholder confidence, the company closed hundreds of stores and is on track to close another 300 this year. Sears also sold its Craftsman tool brand to Stanley Black & Decker for $900M. But with the holiday season fast approaching, it could be too little, too late.
Advertising and promotional costs are high during the holidays and often require retailers to use extra funding, meaning the fate of Sears could fall into the hands of creditors before the holiday shopping season even begins.
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