As expected, Sears Outlet changes hands
Franchise Group, Inc., the parent company of Liberty Tax Service, completed its previously announced acquisition of the Sears Outlet business and Buddy’s Home Furnishing stores from Sears Hometown and Outlet Stores.
The $120 million acquisition was part of a deal intended to bring Sears Hometown and Outlet stores under the umbrella of Transform Holdco, which was created earlier this year to acquire the assets of Sears Holdings and is owned by Edward Lampert’s ESL Investments.
The move was described as big step for Franchise Group, which acquired Buddy’s Home Furnishings in July of 2019.
The Sears Outlet business is designed to provide customers with in-store and online access to new, one-of-a kind, out-of-carton, discontinued, reconditioned, overstocked, and scratched and dented products across a broad assortment of merchandise categories, including home appliances, lawn and garden equipment, apparel, mattresses, sporting goods and tools, at prices that are significantly lower than list prices.
In its most recent quarter, SHOS posted a loss of $18 million and a comp-store sales decline of 21.7%.
With the addition of the Sears Outlet business, Franchise Group’s store portfolio now includes over four hundred retail locations across its various brands and platforms, with a combination of company operated and franchisee operated stores.
“We welcome the Sears Outlet management team and its employees to Franchise Group,” said Andrew Laurence, the company’s executive VP and chairman of the board. “We believe the Sears Outlet team will be a great addition to our company and will assist us in achieving our long-term strategy. This acquisition demonstrates our ability to enhance our portfolio of operating businesses and brands at attractive valuations.”
In connection with and immediately following the closing of the acquisition of the Sears Outlet business, and as previously announced, A-Team Leasing became a franchisee of 5 Sears Outlet business locations and an existing franchisee of Buddy’s Home Furnishings acquired the 9 Buddy’s Home Furnishing locations that were acquired together with the Sears Outlet business from Sears Hometown.
The $120 million acquisition was part of a deal intended to bring Sears Hometown and Outlet stores under the umbrella of Transform Holdco, which was created earlier this year to acquire the assets of Sears Holdings and is owned by Edward Lampert’s ESL Investments.
The move was described as big step for Franchise Group, which acquired Buddy’s Home Furnishings in July of 2019.
The Sears Outlet business is designed to provide customers with in-store and online access to new, one-of-a kind, out-of-carton, discontinued, reconditioned, overstocked, and scratched and dented products across a broad assortment of merchandise categories, including home appliances, lawn and garden equipment, apparel, mattresses, sporting goods and tools, at prices that are significantly lower than list prices.
In its most recent quarter, SHOS posted a loss of $18 million and a comp-store sales decline of 21.7%.
With the addition of the Sears Outlet business, Franchise Group’s store portfolio now includes over four hundred retail locations across its various brands and platforms, with a combination of company operated and franchisee operated stores.
“We welcome the Sears Outlet management team and its employees to Franchise Group,” said Andrew Laurence, the company’s executive VP and chairman of the board. “We believe the Sears Outlet team will be a great addition to our company and will assist us in achieving our long-term strategy. This acquisition demonstrates our ability to enhance our portfolio of operating businesses and brands at attractive valuations.”
In connection with and immediately following the closing of the acquisition of the Sears Outlet business, and as previously announced, A-Team Leasing became a franchisee of 5 Sears Outlet business locations and an existing franchisee of Buddy’s Home Furnishings acquired the 9 Buddy’s Home Furnishing locations that were acquired together with the Sears Outlet business from Sears Hometown.