Sears Holdings Corp. will close an additional 150 stores and try to raise $1 billion in real estate sales to stem its losses and help with its liquidity structure.
The store closures — 109 Kmart locations and 41 Sears sites — are considered unprofitable stores, the company said.
The latest move is on top of the planned sale of Craftsman to Stanley Black & Decker in a deal valued at $900 million, the new $500 million real estate backed loan from affiliates of ESL Investments and the continued exploration of options for Kenmore, DieHard and the Sears Home Services business, as well as its Sears Auto Centers business.
Sears on Wednesday also said it will sell more of its real estate assets to give it more liquidity. The company disclosed Thursday that the goal is to raise over $1 billion through the real estate sales, and noted that the structure of past deals would be under consideration. Those deals included joint ventures with mall operators and the spin-off of certain real estate assets to form real estate investment trust Seritage Growth Properties.
Edward S. Lampert, chairman of both Sears and ESL, said, “We are taking strong, decisive actions today to stabilize the company and improve our financial flexibility in what remains a challenging retail environment.”
Lampert reiterated the retailer’s commitment to improve short-term operating performance so it can achieve long-term transformation to its “Shop Your Way” membership platform. On Thursday, Lampert touted the membership platform as a “network with tens of millions of active members.” He also said Sears would focus on its integrated retail strategy in order to be a “more nimble, innovative and relevant retailer that is better able to provide value and convenience to our customers.”
Lampert has been trying to execute a membership-based platform as the company’s turnaround strategy, selling off assets to help fund the turnaround and buy the company more time for the execution. “We are confident that concentrating on these key initiatives will lay the foundation for growth over the long-term,” Lampert said.