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Friday
Feb242012

Sears to 'Unload' 1,200 Stores

Sandy Huffaker/Bloomberg News(CHICAGO) -- Sears might “unload” 1,200 stores in an effort to raise money, the company said Thursday. A majority stakeholder in Sears Holdings Corp., which operates Sears and Kmart, is hoping to receive $770 million in cash related to the stores.

Sears Holdings Corp., based in Hoffman Estates, Ill., Thursday reported a significant loss for the fourth quarter after a difficult holiday shopping season. The company had a net loss of $2.4 billion for the quarter that ended Jan. 28, including several one-time charges, compared to a profit of $374 million for the same period last year.

Sales dropped $518 million to $12.5 billion last quarter. Officials have tried to turn around the company as same-store sales have fallen for six straight years.

Sears describes itself as the country’s, “fourth largest broadline retailer with over 4,000 full-line and specialty retail stores in the United States and Canada,” according to its website.

ESL Investments, a hedge fund that controls Sears through a 61 percent stake, has plans to unload more than 1,200 stores, a plan that some interpreted as the beginning of the breakup of the company, according to the Wall Street Journal.  A spokesman for Sears said the company is not selling the stores, but “unloading” them.

Sears Holdings said Thursday it intends to separate its Sears Hometown and Outlet Businesses and certain hardware stores by selling their rights and hopes to raise $400 million to $500 million. The company also separately announced the sale of 11 Sears stores in nine states for $270 million. The sale to General Growth Properties is expected to close in the next 45 to 60 days.

The company laid off 100 employees earlier this month at its headquarters and announced in December the closing of 100 to 120 stores, eventually disclosing a list of the first 79 locations.

Copyright 2012 ABC News Radio







ABC News Radio