Traverse City Record-Eagle

Archive: Friday

February 24, 2012

Sears to sell stores in separate deals

THE ASSOCIATED PRESS Associated Press

NEW YORK — Sears said Thursday that it's unloading some of its profit-busting stores, but the retailer fell short of revealing how it plans to woo shoppers back into its remaining ones.

Investors have long speculated that the troubled retailer could sell off its massive real estate holdings to generate extra cash.

As part of its turnaround plan, Sears, based in Hoffman Estates, Ill., said on Thursday that it will spin off its smaller Hometown and Outlet stores as well as some hardware stores in a deal expected to raise $400 million to $500 million.

In a separate deal, Sears will sell 11 stores to the real estate company General Growth Properties for $270 million. The company also said it plans to cut inventory by $580 million.

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