Sears takes $500M loan as it seeks to transform company
NEW YORK (AP) - Hoffman Estates-based Sears said Friday it obtained a $500 million loan as it tries to turn its business around.
The department store operator is in the midst of closing stores and selling assets. It said earlier this year that it is considering a sale or part or all of its auto center business. Sears, which also owns Kmart stores, said the loan will help with the "transformation."
It received $250 million of the loan Friday and will take the rest in the future. The loan is secured by mortgages on 13 properties that Sears owns.
The company said in February that it plans to combat slowing sales by closing about 50 of its unprofitable stores. Sears is focusing on growing its Shop Your Way membership program, which lets shoppers earn rewards for purchases at Sears, Kmart and other partner stores.
Shares of Sears Holding Corp. rose 3 cents to $14.37 in afternoon trading Friday. Its shares are down more than 66 percent over the past year.