A financial report says ” Sears Holdings Corp. announced a number of actions this past week prior to releasing its earnings report for the third quarter. Sears warned that its third-quarter EBITDA loss will widen to $250 million to $300 million, compared with last year’s comparable-period EBITDA loss of $156 million.
The beleaguered retail giant said it would continue to evaluate its U.S. stores by reviewing each location, including leased locations that are set to expire, and decide whether or not to renew leases for them.
Chicago-based Sears also announced it was evaluating spinning off both its Lands’ End and Sears Auto Center businesses.
However, while these asset sales will provide liquidity, they do not help Sears overcome its bigger problem – namely, how to stem losses and stabilize revenues.
Sears, which had 3,418 stores, including its Kmart brand, as of March 2007, now has fewer than 2,073 – a reduction of nearly 40%.”