03/18/2016 08:28 EDT | Updated 03/19/2017 01:12 EDT

Sears Canada to cut up to $127 million in expenses this year, most by Q1

TORONTO — Sears Canada says it's planning to cut its overhead costs by a further $100 million to $127 million this year, on top of about $125 million in expense reductions it made last year.

The national retail chain (TSX:SCC) didn't provide details of how it will cut more sales and administrative costs but it expects to have the "vast majority" of the plan implemented within the first quarter of 2016.

Sears did announce it's negotiating details of an agreement for Easyfinancial Services Inc. to take over support of financing for Sears Canada customers who purchase large ticket items.

The Toronto-based company also announced it will sell its national logistics centre in Calgary but continue to use the facility under an $84-million sale-leaseback agreement that's expected to close in the first quarter.

The announcements were included with Sear Canada's fourth-quarter financial report, which showed an 8.7 per cent decline in overall revenue — to $887.6 million from $972.5 million — and 1.6 per cent decline in sales at stores open for more than a year.

The company reported a $30.9 million net profit, or 30 cents per share, for the quarter ended Jan. 30 mainly because of a $170.7 million gain from the termination of a credit card agreement with JPMorgan Chase Bank in November.

In the comparable period a year earlier, Sears Canada had a net loss of $123.6 million or $1.21 per share.

The Canadian Press