Sears explores store sales to boost liquidity
Sears is looking to sell 200-300 of its stores
US department store retailer Sears Holdings has said it's considering selling up to 300 stores in a bit to boost its finances.
In a filing, the company said it is actively exploring the monetisation of a portion of its owned real estate portfolio - 200-300 stores - through a sale-leaseback transaction, with the selected stores to be sold to a newly-formed real estate investment trust.
Sears would continue to operate in the stores by leasing them back, and would get "substantial proceeds" from the sale, which it said would further enhance its liquidity. Shareholders would be given the option to buy shares of the REIT.
However, it added: "There can be no assurance that the company will pursue such a transaction, nor can there be any assurance that, even if pursued, such a transaction could be entered into and consummated on satisfactory financial and other terms."
In the same filing, Sears said it expects its third-quarter loss to widen to a range of $590m to $630m, from a loss of $497m a year earlier.
Sales, excluding newly opened or closed locations, are expected to fall 0.1%, with a 0.5% increase in sales at Kmart offsetting a 0.7% decrease at Sears' domestic locations.
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