Sears Holdings Corp. said that it is considering forming a real-estate investment trust that would hold 200 to 300 of its stores, as the struggling retailer continues to pursue ways to shore up its balance sheet, the Wall Street Journal reported today. Through a sale-leaseback deal, the company would continue to operate in the store locations, but the real estate would be sold to a newly formed REIT and shareholders would be given rights to purchase shares or equity stakes. The retailer said it would book “substantial proceeds” from such a move. Sears has been hemorrhaging cash as it reported losses that have rattled its supplier base. The company has recently sought to raise cash as the holiday season approaches, including selling $625 million in debt to owners of the company’s stock and taking a $400 million short-term loan backed by 25 of the company’s properties.
