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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.
