This announcement comes following another three-month period of dropping sales and more losses, renewing the concerns about the chain’s future.
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For the period ended July 30, Sears Holdings Corp. lost $395 million, or $3.70 per share.
The results from one year ago were helped by a spinoff of $2.7 billion in properties into a REIT.
In an earnings call, he said the company’s leases on hundreds of stores will soon expire, suggesting they could be shuttered if required.
Comparable sales went down 5.2% YoY, while United States comp sales fell 7.7% from the same quarter previous year, mainly due to decline in apparel, footwear, consumer electronics, home appliances, lawn & garden, and tools.
Lampert, Sears chief executive officer and biggest shareholder, has been selling assets and closing stores to stem the company’s continued cash burn. The financing should close in between 7 and 10 business days said company officials.
The terms were approved by the related-party transactions subcommittee of the board, with advice from Centerview Partners and Weil Gotshal & Manges, the subcommittee’s financial and legal advisers, according to the company.
Here comes Eddie Lampert to Sears Holdings’ shld rescue again. The stock has dropped 29 percent this year, compared with an 8.3 percent gain for the Russell 2000 Consumer Discretionary Index.
Lampert pledged to make a leaner retailer that is focused on sales through multiple channels.
Sears also said it has had interest in its Sears Home Services business and its Kenmore appliance, Craftsman tools, and DieHard vehicle battery brands from retailers, manufacturers, and investors. He invested heavily in digital as well as loyalty programs for the company in an attempt to cope with mall traffic slowing down.
The US retail store posted operating loss of $269 million, against operating income of $99 million in the comparable quarter past year, amid fierce competition and flagging sales.
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Once the largest USA retailer, Sears has lost its standing as customers move to online shopping or rivals such as Wal-Mart Stores Inc. “We intend to aggressively evaluate all of the potential alternatives available to these businesses”, Sears said.
