HOFFMAN ESTATES (dpa-AFX) - Struggling department store operator Sears has exercised its right to terminate the leases on 19 unprofitable stores.
Earlier, the company had reported that it would shutter 30 Sears and Kmart stores in early 2017.
The stores account for about $5.9 million in rent or 2.7 percent of the retailer's total annual base rent as of the end of September.
Sears has also reached an agreement with hedge fund ESL Investments for a $500 million secured loan facility. The loan was secured by mortgages on 46 properties owned by the company's subsidiaries.
Of the total, $321 million was funded under the loan facility, with the remaining $179 million available for withdrawal in the future.
'This loan facility will provide Sears Holdings with additional financial flexibility and support our operations as we meet all of our financial obligations,' Jason Hollar, Sears' chief financial officer, said in a statement.
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