Shares of Sears Holdings jumped more than 9 percent on Monday after Chairman and CEO Edward Lampert bought more of the department store's shares. Lampert was already Sears’ largest shareholder, but bought 526,000 additional shares last week, according to a regulatory filing.
Lampert's purchase came shortly after Sears acknowledged there was "substantial doubt" it will be able to stay in business, sending the company's shares tumbling by about 12 percent. Back in February, Sears announced a restructuring plan aimed at cutting at least $1 billion in costs this year. The retailer also laid off about 130 corporate employees and plans to close 150 Sears and Kmart stores this year in an attempt to cut costs.
To try and win back customers — the department store chain lost $2.2 billion last year while sales at stores open at least a year continued to slide — Sears plans to improve its stores’ selection of products while dropping unprofitable categories.