Sears expects smaller 3Q loss, pension contribution relief

Retail Reuters

A Sears logo is seen at a store in Schaumburg, Illinois, September 23, 2013. REUTERS/Jim Young/File Photo (Copyright Reuters 2017)

Nov 8 (Reuters) - U.S. retailer Sears Holdings Corp on Wednesday forecast a smaller loss for the third quarter, and said it signed a deal to relieve itself from making some future pension contributions.

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As part of an agreement, Sears will pay $407 million to Pension Benefit Guaranty Corp and relieve itself from making pension contributions for the next two years.

Sears said it would raise that amount by selling some stores and through financing secured by some properties.

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The retailer, which has been shutting stores following years of declining sales, said it expects a net loss of between $595 million and $525 million for the third quarter, compared with a $748 million loss in the same period a year ago.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Sai Sachin Ravikumar)

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