The Numbers Don't Lie: Sears’ Financial Relief

Sears, led by CEO Eddie Lampert, received a $200 million credit line from ESL Investments, with potential expansion to $300 million. Despite this, Sears faces significant financial challenges, having accumulated $9 billion in losses over eight years. The company needs to raise $1.5 billion to survive 2017. Sears' decline is marked by a reduction in store count and a drop in same-store sales, with a 10% plunge at US locations. The merger with Kmart in 2005 failed to boost sales or stock value. Sears is considering selling its Craftsman, Kenmore, and DieHard brands to mitigate losses. The focus remains on securing funding rather than stock performance.

What form of financial relief did Sears receive from its CEO, Eddie Lampert?

• A $500 million cash injection

• A $100 million stock buyback

• A $200 million letter of credit

• A $50 million loan

What strategy did Lampert use to support Sears financially?

• Launching new product lines

• Expanding brick-and-mortar stores

• Selling off household brands and real estate

• Increasing online sales

What was the only quarter of positive sales growth for Sears since 2000?

• 2017

• 2015

• 2005

• 2010

What was the initial investor sentiment after the merger of Sears and Kmart in 2005?

• Concerned about competition

• Indifferent due to market conditions

• Hopeful due to real estate value

• Pessimistic due to declining sales

Which brands might Sears sell to address its financial losses?

• Apple, Samsung, and Sony

• Ford, Chevrolet, and Tesla

• Nike, Adidas, and Puma

• Craftsman, Kenmore, and DieHard