Backspin: new Sears acquires Sears Hometown
Transform Holdco, also known as the post-bankruptcy “new Sears,” acquired all of Sears Hometown and Outlets, the retail network of hardware and appliance stores that Sears Holdings spun off in 2012.
ESL Investments, which owns Transform Holdco, already owned 58% of Sears Hometown, which had a total of 677 stores in 49 states at the end of fiscal 2018. More than 90% of its Hometown Stores are operated by independent local dealers or franchisees.
Sears Hometown posted a net income loss of $53.5 million in fiscal 2018, and a comp-store sales decline of 8.5%.
Transform Holdco LLC said Monday that it will pay $2.25 per share for Sears Hometown in a deal that it hopes will serve customers as a multi-channel business by expanding the company’s footprint and bolstering opportunities for Sears Home Services and the Shop Your Way rewards program.
"We are excited to bring Sears Hometown, its associates and network of independent dealers and franchisees back into the Sears and Kmart family,” said Edward S. Lampert, chairman of Transform. “Our investment demonstrates our commitment to growing Transform for the benefit of our members and customers, associates, vendors and communities across the country. While, initially, the companies will operate independently, we see many opportunities where we can partner to serve our customers better and enjoy efficiencies of scale once these businesses are under one roof."
Will Powell, CEO and president of Sears Hometown and Outlet Stores, said: “We believe that reuniting our Sears Hometown segment stores with Transform's Sears full-line stores will result in a more consistent customer experience across Sears branded storefronts, generate higher total revenues and leverage efficiencies of scale to improve costs and margins, all of which could lead to improved profitability for Sears Hometown's dealers and franchisees."
ESL Investments, which owns Transform Holdco, already owned 58% of Sears Hometown, which had a total of 677 stores in 49 states at the end of fiscal 2018. More than 90% of its Hometown Stores are operated by independent local dealers or franchisees.
Sears Hometown posted a net income loss of $53.5 million in fiscal 2018, and a comp-store sales decline of 8.5%.
Transform Holdco LLC said Monday that it will pay $2.25 per share for Sears Hometown in a deal that it hopes will serve customers as a multi-channel business by expanding the company’s footprint and bolstering opportunities for Sears Home Services and the Shop Your Way rewards program.
"We are excited to bring Sears Hometown, its associates and network of independent dealers and franchisees back into the Sears and Kmart family,” said Edward S. Lampert, chairman of Transform. “Our investment demonstrates our commitment to growing Transform for the benefit of our members and customers, associates, vendors and communities across the country. While, initially, the companies will operate independently, we see many opportunities where we can partner to serve our customers better and enjoy efficiencies of scale once these businesses are under one roof."
Will Powell, CEO and president of Sears Hometown and Outlet Stores, said: “We believe that reuniting our Sears Hometown segment stores with Transform's Sears full-line stores will result in a more consistent customer experience across Sears branded storefronts, generate higher total revenues and leverage efficiencies of scale to improve costs and margins, all of which could lead to improved profitability for Sears Hometown's dealers and franchisees."