Dive Brief:
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Gary Balter, an analyst at Credit Suisse, Thursday said that when it comes to Sears, the Doors song “The End” is stuck in his head.
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In a note to shareholders, Balter said, "Let's face facts. Sears is generating negative operating cash flow of between $1 billion and $2 billion [closer to upper end, it looks like] in 2014.”
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He also noted that the retailer said it wouldn’t have the cash flow necessary to offer key merchandise during the upcoming holiday season.
Dive Insight:
Coming after a credit downgrade from Fitch and the news that Sears CEO Eddie Lempert’s hedge fund would be loaning money to keep the retailer afloat, this note from Credit Suisse analyst Gary Balter comes close to being another nail in the coffin.
The Doors song that Balter says is stuck in his end when he thinks about Sears is indeed pretty bleak: “This is the end … the end of our elaborate plans, the end of everything that stands, the end. No safety or surprise, the end. I'll never look into your eyes, again.”
