Sears Secures New Line of Credit, but Troubles Far From Over

Sears Holdings received a holiday miracle on Thursday, but its troubles are far from over.
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Sears Holdings (SHLD) received a holiday miracle on Thursday, but its troubles are far from over. News that Sears lined up $200 million in credit to keep its ship afloat sent shares up by as much as 10% on Thursday, but the stock was moving lower Friday morning. The retailer says the credit amount could be increased to as much as $500 million but, according to Moody's analysts, the company will need to raise about $1.5 billion to survive next year. While it certainly doesn't bode well for Sears that it is desperate for cash so soon after Christmas, it promises to continue on and adjust its capital structure to meet its financial obligations. But bankruptcy could be the best course of action for Sears.

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