Sears Hints REIT Transaction Expected By June

In a blog post published on Thursday, Sears Holdings Corp's (NASDAQ: SHLD) Chief Financial Officer Rob Schriesheim refuted a Wall Street Journal report suggesting that there is "something wrong" with Sears offering to pay a vendor earlier than what it believes is typical.

"Just like any other retailer, Sears can and does expect that it will receive benefits in return for any shorter payment terms it may provide to a vendor," Schriesheim wrote. "Put another way, most families would like to pay off their credit cards on time or early, if they could and if there was a benefit from doing so (or a penalty for not doing so)."

Schriesheim wrote that the company continues to pay its vendors and meet its financial obligations "as we always have." The executive added that providers of insurance have never had to pay a claim to any vendor tied to Sears' business and to date, no material interruptions in the flow of goods has been seen.

Hint At REIT?

The executive also mentioned that the company's decision to form a Real Estate Investment Trust (REIT) to purchase between 200 and 300 stores and manage them as a real estate company may be progressing. The blog stated that "a successful completion of a REIT transaction, currently expected by June 1, would provide cash proceeds to Sears Holdings in excess of $2.0 billion."

The blog concluded that Sears has an "abundance" of valuable assets and the company maintains "numerous levers" to generate liquidity when necessary to do so.

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