Could Sears (NASDAQ:SHLD) be Saved?

A hefty loss of $975 million and change in consumer preferences are both drowning an already sinking boat of Sears (NASDAQ:SHLD). The company, unable to support itself, turned to its Chairman CEO Eddie Lampert who ensured a loan of $400 million. $200 of which have already been handed over to Sears (NASDAQ:SHLD), while the remaining 200 are to be delivered by October this year.

Even though the loan has been secured by Sears (NASDAQ:SHLD) properties, their share dropped from $25 to $5, according to one analyst. As the months of fall and Christmas approach, big orders are to be delivered. Suppliers look out for shaky payers, resulting in big shifts in some company inventories. Sears (NASDAQ:SHLD) needs to maintain an image for the suppliers as well as its customers.

Rumor has it, that Sears (NASDAQ:SHLD) might be forced to close down by the end of 2016, as no strong action seems to be taking place to tackle this unfortunate situation. The only obvious move which has been made is the opening of a small, one floor store, within a shopping center. Its like testing new waters but maybe one step too late in respect to this existing store portfolio in the US and Canada.

Future predictions also indicate the company’s EBITDA (earnings before interest, taxes, depreciation and amortization) to round up to negative $1 billion this year, beating the $337 million in fiscal 2013. Sears (NASDAQ:SHLD) is losing its credibility and also its consumers. Mr. Lampert seems hesitant to comment on the company’s current situation. Many short term strategies have been tried and tested but nothing proved fruitful.

Sears (NASDAQ:SHLD) tried introducing new items and eliminating old ones, but that did little or no good at all. One of the worst moves Sears (NASDAQ:SHLD) has made was eliminating its exclusive. With the existing competition and ever changing needs of the consumers, Sears (NASDAQ:SHLD) needs an innovative plan. Even though they made an attempt to introduce a “Shop your way” loyalty program but to date it has proven ineffective.

At this stage what is expected of Sears (NASDAQ:SHLD) is to bring in innovation within their stores, products, and services. To cater to the customers of this era, Sears (NASDAQ:SHLD) needs to offer quicker delivery services, faster repairs, an introduction of a Microsoft center maybe?

Another approach, Sears (NASDAQ:SHLD) could have adopted is putting up its real estate for sale. Out of the nearly 400 full line stores, 25 stores are already mortgaged for the recent loan. But the company, still has in hand the additional 183 Kmart discount stores and 12 Kmart supercenters. These could be sold off to high retailers like H&M or Primark, due to their prime locations.

The major area of concern for Sears (NASDAQ:SHLD) seems to be its lack of vision, as to which direction to head towards. Ineffective management, and eagerness to strip off its valuable properties that companies normally hold on to is basically why Sear (NASDAQ:SHLD) seems to be slowly drifting out of sight and out of mind.