NEW YORK (TheStreet) -- Shares of Sears Holdings Corp. (SHLD) are down by 3.46% to $27.03 in early afternoon trading on Friday, as the stock continues to decline following yesterday's negative analyst note from Credit Suisse, suggesting the company should liquidate its assets.
The struggling department store will receive a $400 million loan from the hedge fund of its CEO Eddie Lampert, which is enough to keep Sears afloat for three months, but the company will need 10 times the capital if it wants to last another two years, Bloomberg reports.
Sears realized more than $6 billion in losses over four years, and will run out of cash in 2016, unless it gets at least $4 billion of new capital, Fitch Ratings said, according to Bloomberg.
Must Read: Warren Buffett's 25 Favorite Stocks
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Sears has been dealing with a decline in consumer spending in its department stores as customers tend to do their shopping online.
The company may have to sell additional debt and divest assets if it hopes to reach Lampert's objective of cutting costs, while investing in rebuilding its brands, Bloomberg noted.
Separately, TheStreet Ratings team rates SEARS HOLDINGS CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEARS HOLDINGS CORP (SHLD) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow."