NEW YORK — Sears says it has a deal with the federal pension insurance agency to release 140 properties from certain restrictions in exchange for $407 million in pension contributions, some relief for the once-storied department store chain.
Sears Holding Corp. based in Hoffman Estates, Ill.,, which operates Sears stores, says it expects net losses for the third quarter to improve by $190 million and that it hit its $1.25 billion target in cost savings for 2017 to date. The company continues to close underperforming stores and sell assets in an attempt to remain afloat.
Sears expects about $3.7 billion in revenue for the third quarter, down from $5 billion a year ago, mostly because of store closures.
It lost more than $2 billion in 2016.
The deal with the pension fund is expected to close in three months. After the $407 million contribution is made, Sears said it will be freed from pension obligations for two years.