Sears Holdings Corp.said 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 as it seeks to regain profitability and market share.
The operator of Sears and Kmart also says will sell 11 stores to the real estate company General Growth Properties for $270 million.
The moves drove Sears' stock up more than 13 percent in premarket trading.
The disclosures of the store plans came as the Hoffman Estates, Ill.-based company reported it swung to a loss in the fourth-quarter while revenue fell 4 percent to $12.48 billion. Adjusted earnings totaled 54 cents per share, below analyst expectations.
In a call with analysts, CEOLou D'Ambrosiosaid results were "unacceptable."
"We know that and are taking immediate actions to address it," he said.
-- AP via Los Angeles TimesCopyright © 2014, Los Angeles Times