Sears Raises $100 Mln in New Funding, Sees Smaller Fourth Quarter Loss

Sears Raises $100 Mln in New Funding, Sees Smaller Fourth Quarter Loss

Sears, like a lot of distressed retailers, needed a good holiday season.

Sales at Sears and Kmart stores plunged during November and December. Those stores combined for about $850 million in sales over the past 12 months but were among the retailer's worst performers.

He added the just announced financial transactions and cost cuts it's pursuing "are created to accelerate our return to profitability and enable Sears Holdings to increase our investment in the most promising opportunities in our enterprise, including our Shop Your Way network and our Sears Home Services business". Adjusting to account for fewer pharmacies and a smaller electronics assortment, same-store sales were off 14% to 15%.

The company's bleak holiday season was an outlier.

The additional $200 million Sears wants to raise may be secured against the same collateral, under certain circumstances and with consent of the lender, it said. But it's still losing money, and borrowing heavily. The company said it's also moving toward $200 million in cost savings not connected to store savings. Sears added that it had changed the advance rate for inventory under its second lien notes (to 75% from 65%) and is working on an agreement to improve terms in its $1 billion non-first lien debt.

Just last week, Sears announced another round of store closures, which the company said were some of its "lowest performing" locations.

Shares of the company, whose going-concern warning epitomized the troubles of America's biggest traditional retailers, tumbled more than 60 percent in 2017.

While reiterating his belief that the department store has the right strategy to turn Sears around, Chief Executive Officer Eddie Lampert said should the refinancing "not be fully successful, the Company's Board will consider all other options to maximize the value of Sears Holdings' assets". It has racked up $10.4 billion in losses since 2010, its last profitable year.

"(W) e expect a net loss attributable to Sears Holdings' shareholders of between $320 million and $200 million in the fourth quarter of 2017, compared to a net loss attributable to Sears Holdings' shareholders of $607 million in the prior year fourth quarter", according to the statement.

Sears (SHLD) closed hundreds of stores a year ago, leaving it with just over 1,100.

The latest moves are on top of new plans to close 103 Sears and Kmart stores this spring.

Related Articles

  • Mason Holgate facing ban threat over 'homophobic tweets'

    Mason Holgate facing ban threat over 'homophobic tweets'

    He's facing a potential misconduct charge from the FA after they've opened an investigation, per The Times . But the governing body does not regard that as a defence of the player's conduct or mitigation.
    President Trump signs order to assist rural broadband buildout

    President Trump signs order to assist rural broadband buildout

    Trade Representative Robert Lighthizer, who said in the fall that he was "surprised and disappointed" by the resistance of Mexico and Canada to updating NAFTA.
    Jack White Announces New Album 'Boarding House Reach' Shares Two Tracks

    Jack White Announces New Album 'Boarding House Reach' Shares Two Tracks

    White's third solo outing, " Boarding House Reach ", is expected to hit the streets soon, although no official release date has been announced.
  • Newcastle dealt blow as Liverpool rule out Danny Ings loan exit

    Newcastle dealt blow as Liverpool rule out Danny Ings loan exit

    A move to Inter would see Sturridge link up with one of Europe's hottest forwards at the moment. That's where Liverpool's Daniel Sturridge could come in.
    Body of missing fisherman found in Lake Okeechobee

    Body of missing fisherman found in Lake Okeechobee

    According to a fisherman, Kisiah was found alive clinging to the boat around 11 p.m. last Thursday. Scott Driver Recreational Area, prompting a massive search.
    'Krrish 4' to release in 2020

    'Krrish 4' to release in 2020

    As Hrithik Roshan turns a year older, fans of the actor have taken over Twitter to celebrate his birthday with a must watch video. It is reported that Nawazuddin Siddiqui will play the negative character in Hrithik Roshan starrer Krrish 4 .
  • Could SVB Financial Group (SIVB) Go Down After Achieving 52-Week High?

    The stock of SVB Financial Group (NASDAQ:SIVB) has "Buy" rating given on Monday, September 18 by Keefe Bruyette & Woods. On Wednesday, August 2 Descheneaux Michael sold $637,257 worth of SVB Financial Group (NASDAQ:SIVB) or 3,500 shares.
    Bernstein Lowers Campbell Soup Company (CPB) to Underperform

    Bernstein Lowers Campbell Soup Company (CPB) to Underperform

    Northern Capital Management Llc increased Campbell Soup Company ( CPB ) stake by 235.81% reported in 2017Q3 SEC filing. Investors of record on Wednesday, January 10th will be paid a dividend of 0.35 per share on Monday, January 29th.
    Twitch signs up for two-year Overwatch deal

    Twitch signs up for two-year Overwatch deal

    It has also announced plans to add custom Overwatch League "cheermotes", which will be revealed at a later date. This treatment does not include transmission rights, but technological development and commercialization.
  • Three flu-related deaths reported in Tarrant County

    Three flu-related deaths reported in Tarrant County

    So far, influenza A (H3N2) viruses have been the most common flu viruses circulating this season, according to CDC. ODH recommends that people get the flu vaccine, which can prevent against certain strains of the flu.
    APC mega rally: We'll return Abia to APC, say Oyegun, Kalu

    APC mega rally: We'll return Abia to APC, say Oyegun, Kalu

    In his address, former Enugu State Governor, Sullivan Chime commended Abia APC for the rally, saying it is time for the South East zone to embrace APC as the party of truth.

    Is Buying Norfolk Southern Corporation (NSC) Here a Winning Strategy?

    David Shaw decreased its stake in Norfolk Southern Corp (NSC) by 38.93% based on its latest 2017Q3 regulatory filing with the SEC. Following the completion of the transaction, the vice president now owns 6,370 shares in the company, valued at $858,102.70.