Oct 20 (Reuters) – Sears Holdings Corp said it
would raise as much as $625 million through an unsecured loan
and equity warrants, its third fundraising in a month, as it
seeks to ease suppliers’ concerns about its finances going into
the critical holiday season.
Shares of the retailer jumped 21.4 percent to $34.5 on the
Sears said Chief Executive Officer Eddie Lampert and his
hedge fund, ESL Investments Inc, would purchase roughly half of
the offering, in which the right to buy unsecured senior notes
and warrants will be issued to existing shareholders.
By Nathan Layne
(Reuters) – Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research, Stock Buzz) cut its annual sales forecast on Wednesday, citing a stronger dollar and the impact of food stamp reductions, and it said it would slow store openings in the next financial year as it shifts spending to its online business.
The announcements, made at an annual gathering of analysts and investors, highlight how the financial struggles of its core customer base – low-income consumers – continue to weigh on its earnings and have prompted a more cautious stance on traditional bricks-and-mortar expansion.
By Nathan Layne and Sruthi Ramakrishnan
(Reuters) – J.C. Penney Co Inc (JCP.N: Quote, Profile, Research, Stock Buzz) named Home Depot Inc (HD.N: Quote, Profile, Research, Stock Buzz) executive Marvin Ellison as its new chief on Monday, ending an 18-month search but barely allaying investor concerns over problems facing the money-losing department store chain.
Ellison, 49, an industry veteran credited with reviving Home Depot’s U.S. business, will join J.C. Penney as a board member in November, and succeed Myron Ullman, 67, as chief executive in August 2015.
(Reuters) – Sears Holdings Corp said it was the victim of a cyberattack that likely resulted in the theft of some customer payment cards at its Kmart stores, the latest in a series of computer security breaches to hit U.S. companies and dealing a fresh blow to the struggling U.S. retailer.
The U.S. Secret Service confirmed it was investigating the breach, which occurred in September and compromised the systems of Kmart, which has about 1,200 stores across the United States. The breach did not affect the Sears department store chain.
Oct 10 (Reuters) – Lower gasoline prices are expected to
fuel higher retail sales this winter, especially at Wal-Mart
Stores and other chains that cater to low- to
middle-income shoppers, analysts said.
The average price at the pump dropped to $3.24 a gallon on
Friday, down 11 percent from three months earlier and the lowest
level in October since 2010, according to AAA. The motorist
group predicts the price will fall below $3 in the coming
(Reuters) – Wal-Mart Stores Inc, the biggest U.S. private sector employer, said on Tuesday that its 1.3 million workers would have to pay more for healthcare and it would end benefits for some part-time staff in a move that could prompt other companies to follow suit.
The world’s largest retailer said it would raise health insurance premiums for its entire U.S. workforce beginning in January. In addition, Wal-Mart will end coverage for employees who work fewer than 30 hours a week, a change that will impact 2 percent of U.S. workers, or about 30,000 people.
CHICAGO, Oct 5 (Reuters) – Sears Holdings Corp.’s
deepening financial troubles have forced insurers and banks to
raise the cost of guaranteeing payment to vendors, rattling the
retailer’s supply chain as the company heads into the key
The move by these financial intermediaries — in an opaque
but vital quarter of the retail business where makers of goods
ranging from apparel to TVs seek to insure they get paid –
comes in the wake of unusual steps Sears has taken to raise cash
for operations. In the past three weeks, the retailer twice has
turned to its billionaire CEO Eddie Lampert’s hedge fund for a
cash infusion — first as the anchor on a $400 million loan and
then again Thursday as a buyer for most of its stake in the
ailing Sears Canada. Sears aims to raise $380 million
with that deal.
Oct 2 (Reuters) – Sears Holdings Corp is turning to
its chief executive for cash for the second time in three weeks
in a sign that its efforts to sell off assets are coming up
The retailer announced Thursday that it would raise up to
$380 million by lowering its stake in Sears Canada to
12 percent from 51 percent through a rights offering. It said
Chief Executive Eddie Lampert and his hedge fund, which together
own 48.5 percent of Sears Holdings, would buy about half of the
TORONTO/CHICAGO, Sept 25 (Reuters) – The turnaround
specialist who had signed on to run Sears Holdings Corp’s
Canadian business is resigning for personal reasons,
the struggling U.S. retailer said on Thursday, the same day a
major shareholder said it was no longer interested in
contributing to a loan.
Chief Executive Officer Douglas Campbell will resign by the
end of 2014 to tend to family matters, said Sears Canada, which
is majority owned by Sears Holdings. Campbell had taken the helm
of the unit just a year earlier.
TORONTO/CHICAGO, Sept 25 (Reuters) – Department store chain
Sears Canada Inc, which has had six consecutive years
of declining revenue, said on Thursday that Chief Executive
Douglas Campbell will resign by the end of this year so that he
can tend to family matters.
Sears Canada, which is majority-owned by Sears Holdings Corp
, is facing intense competition and has seen its market
share erode for years.