Sears Posts $2.4 Billion Loss
Posting a $2.4 billion fourth-quarter loss and admitting its sales decline is “unacceptable,” Sears says it is taking other steps to boost liquidity. The Hoffman Estates, Ill.-based company, which has already announced layoffs and the closing of 120 stores, now says it will spin off its outlet, Hometown and hardware businesses through a rights offering, which it expects to generate between $400 and $500 million, sell 11 stores to General Growth Properties, and make big reductions in inventory.
The chain says its Sears stores in the U.S. saw a 4.1% decline in the fourth quarter, while its Kmart unit sales slipped 2.7%.
“We are taking immediate actions to address our fourth quarter performance including cost and inventory reductions, honed and targeted marketing, margin actions, and bringing in new talent to strengthen our merchandising and leadership team,” CEO Lou D'Ambrosio says in its release.