Shares of Sears Holdings Corp. (NASDAQ:SHLD) jumped almost 5% during Thursday session, following the firm declared that it has got a secured standby letter of credit facility, simplifying liquidity issues. The company mentioned that the facility will allow it to demand standby letters of credit of almost $200 million, what can be further prolonged to almost $500 million if the lenders accept. The plant is being offered by JPP, LLC and JPP II, LLC, all divisions of ESL Investments Inc., with Citibank, N.A. acting as administrative mediator and issuing bank. Shares of Sears are still lower 58% on the year, while the S&P 500 SPX, -0.09% has jumped almost 10%.
Sears Holdings intends to start yet another series of store shutdowns in the start of 2017. Business Insider declared on Thursday that the gloomy retailer would end almost 30 Sears (NASDAQ:SHLD) and Kmart stores following liquidation sales that would start in January. Firm workers informed Business Insider that the stores would shut down business for good between late March and mid April.
Since purchasing Sears Holdings more than 10 years ago, its CEO has sold off assets in an effort to return the distended retailer to profitability. Following the impending round of store closures, Sears would have less than 1,500 stores in operation, Business Insider declared. That’s 60 percent lower as compared to 2011, when it had above 3,500 stores.
The shutdowns have come together with a prolonged sales decline, as Sears strives to gain back customers who go for online sellers over normal brick-and-mortar stores. In the start of December, Sears reported a quarterly loss of $748 million, which totaled its overall declines to $9.35 billion over the last eight years, according to Bloomberg.