Berkowitz added that he presented his firm's view in front of the Sears board in January, including his concerns about its cash burn. When he left, he said he "did not sense any disagreement among the board with any of the points that I raised."
The day he made his comments, Sears shares closed at $17.52. They were trading near $17 Thursday morning.
During the fourth quarter, Sears reported a loss of $580 million, substantially wider than its $159 million loss in the prior-year period. After the release, Neil Saunders, CEO of Conlumino retail research firm, told investors "there is worryingly little evidence to suggest a material improvement in either the performance of Sears or Kmart."
In a separate note to shareholders following the report, Sears' Lampert wrote:
"Because of Sears and Kmart's longstanding history and cultural impact, we are targeted for criticism when our results are poor. But it is unfair to evaluate our approach through the rearview mirror without acknowledging the changing circumstances in our industry as well as our bold attempts to change the way we do business to meet this changing reality."
Earlier this month, the company announced its intention to obtain a new senior secured term loan facility of up to $750 million. Moody's said the loan would improve Sears' liquidity but maintained its "negative" outlook on the department store.