Sears raises $100M, seeks $200M in cuts

NEW YORK — Sears has secured more financing, and is eying more cost cutting, as the beleaguered retailer reported a big sales drop during the critical holiday season.

The company, which operates Sears and Kmart stores, said Wednesday that it secured $100 million in new financing, will seek twice that from other sources, and will attempt $200 million in additional cost cuts this year unrelated to store closings. It also warned that if the company’s efforts to complete these transactions are not fully successful, then the board will consider all other options to maximize the value of its assets.

Sears Holdings Corp., which said last week it’s closing more than 100 stores, said that during the November and December period, comparable-store sales tumbled by 16 to 17 percent. The metric — which measures sales in stores open at least a year — is a key indicator of a retailer’s health.

Sears’ disastrous holiday sales mark a sharp contrast to the solid gains enjoyed by many of its department store peers such as Kohl’s, J.C. Penney and Macy’s.

Many retailers are enjoying the benefits of a stronger economy and lower unemployment. But they’re also seeing their efforts to spruce up their stores while expanding online services helping to boost their business.

In comparison, Sears hasn’t kept up with the likes of Walmart, Best Buy and Home Depot in investing in its stores, with its shabby fleet its biggest albatross. Moreover, its peers like J.C. Penney are going after Sears’ core appliance business.