After a three-day slide, shares of Sears Holding Corp (NASDAQ: SHLD) were bouncing back today as the struggling retailer said it amended a loan agreement to give it more payback time. As a result, the stock was up 6.5% as of 3:21 p.m. EDT.
Continue Reading Below
In a filing, Sears said it would extend the maturity date on a previous $593 million loan by two years to July 20, 2020, and that it would also receive an additional advance of $186 million, bringing the total loan to $779 million. The company said it would use the additional advance to pay back outstanding loans from a prior real estate loan facility, and the new loan is guaranteed by 69 Sears properties.
The announcement comes after the retailer posted another awful earnings report that included a wide loss, a double-digit drop in comps, and revenue sliding by about a third. Sears also said it would shutter 72 stores in the near future, a sign that the business continues to collapse.
While a loan extension is good news for Sears, it does little to alter the underlying viability of the business. Sears' stores are decrepit; customers continue to flee, and its brand value is virtually non-existent. CEO Eddie Lampert continues to make moves to extend the life of the company, but it won't be enough to save a sinking ship.
10 stocks we like better than Sears HoldingsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Sears Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of June 4, 2018