Why the Financing?

Brief article in the WSJ today about Sears Holdings Corp. They're raising $100M in new financing and pursuing an additional $200M thereafter. Comparable sales fell 16%-17% in the first two months of four quarter.

So... what's the plan? Because, it seems like the plan is to cut costs, tighten up the company as much as possible, and then dump it. I'm not seeing any brand strategy here, or innovative product development, or a new sales structure.

It looks more like a bunch of executives have given up on Sears being a successful company, and they're doing everything they can to play with finances so that they can make an exit.

I guess there's nothing wrong with a play like that, but it doesn't sit right. At least, where's the fighting spirit on this one? How about spinning off a few startup divisions. Or, buying an up-and-coming ecom site-- something to the effect of what Walmart is doing.

Maybe it's that there's something about giving up that's just kind of... uck.

Brandon Cohn