Shares of Sears Holdings Corp (SHLD) gained more than 5% in morning trading before settling in with a small gainThursday after the struggling retail company announced new plans to keep the brand alive. Sears will shutter another 150 stores, including 108 Kmart locations, and the company will sell its Craftsman tools line to raise some much-needed cash.
Sears Tries to Stop the Bleeding
As it stores failed to keep up with modern advances in retail, Sears’ Craftsman tools brand remained one of its lone selling points. That ends today as the company announced it is selling Craftsman to Stanley Black & Decker, Inc. (SWK) for a net present value of nearly $900 million.
Sears also announced this week that it is closing 108 Kmart stores and 42 Sears stores. These specific stores were some of the company’s most non-profitable stores and accounted for an adjusted loss of approximately $60 million over the past 12 months.
Going forward, Sears will most likely look to promote and sustain its stores that are able to be more than just retail outlets; if the company can survive in 2017, it will be because its successful stores are able to be an entertaining destination for its shoppers.
Sears also announced this week that it has entered into another committed secured loan facility worth up to $500 million. The loan comes from ESL Investments, which is a hedge fund managed by Sears CEO Edward Lampert.
Shares of SHLD have lost more than 45% over the last 52 weeks.
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