News
Investors Like Sears’ Latest Plan To Save The Company
Sears Holding Corp. plans to save its struggling business by cutting costs and boosting credit.
The restructuring plan calls for saving $1B in annualized costs, reducing pension payments and debt by $1.5B and adding $140M to the firm’s borrowing capacity, the Wall Street Journal reports. Judging by investor response, it is a good plan. Sears stock jumped 30% this morning following the news.
While not a bad start, the retailer’s stock is still 20% under where it was a month ago. Sears CEO Edward Lampert said the company will achieve these savings by reducing corporate overhead, integrating Sears and Kmart operations, and improving inventory management.
