US retailer Sears Holdings Corporation is undertaking several strategic initiatives to increase its financial flexibility and improve operating performance. The programme is expected to facilitate the transformation of the retailer from a store based and asset intensive business model into a membership focused and asset light business model.
These strategic actions include closing an additional 150 non profitable stores to stem losses, which includes 108 Kmart and 42 Sears stores.US retailer Sears Holdings Corporation is undertaking several strategic initiatives to increase its financial flexibility and improve operating performance. The programme is expected to facilitate the transformation of the retailer from a store based and asset intensive business model into a membership focused and asset light business model.#
The retailer will generate up to $1 billion in liquidity through a $500 million real estate backed loan as well as a standby letter of credit facility of up to $500 million.
Sears Holdings will also market certain properties within its real estate portfolio to further unlock value and increase liquidity.
"We are taking strong, decisive actions today to stabilize the company and improve our financial flexibility in what remains a challenging retail environment," said Edward Lampert, CEO of Sears Holdings. "We are committed to improving short-term operating performance in order to achieve our long-term transformation." (AR)
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