Sears discussing Kenmore, assets sale
Sears Holdings, the parent company of Sears and Kmart stores, said it has appointed a special committee of its board of directors to explore the sale of company assets.
Deals could include the sale of its Kenmore appliance brand, the Sears Home Improvement Products of the Sears Home Services business, and Parts Direct business.
“The Company does not intend to comment further with respect to the Sale Assets unless and until it determines that additional disclosure is appropriate,” Sears Holdings said in a company statement. “As previously disclosed in our annual report, the company is exploring ways to unlock value across a range of assets, including the Sale Assets.”
As previously reported by HBSDealer, Sears Holdings received a letter from ESL Investments last month proposing that the struggling retailer divest some of its assets.
ESL is a hedge fund owned by Sears Holdings chairman and CEO Eddie Lampert,and has proposed buying the businesses from Sears for about $500 million. Lampert is Sears Holdings’ largest shareholder with more than 30% ownership.
The hedge fund has also proposed the purchase Sears’ real estate, along with $1.2 billion in debt. Sears would then lease the stores and continue to operate its brick-and-mortar operation.
The Hoffman Estates-based retailer has been looking to sell additional assets for about two years while closing hundreds of stores.
Last year the retailer sold its Craftsman tool brand to Stanley Black & Decker for nearly $900 million and has since begun selling the Kenmore brand via Amazon.
Deals could include the sale of its Kenmore appliance brand, the Sears Home Improvement Products of the Sears Home Services business, and Parts Direct business.
“The Company does not intend to comment further with respect to the Sale Assets unless and until it determines that additional disclosure is appropriate,” Sears Holdings said in a company statement. “As previously disclosed in our annual report, the company is exploring ways to unlock value across a range of assets, including the Sale Assets.”
As previously reported by HBSDealer, Sears Holdings received a letter from ESL Investments last month proposing that the struggling retailer divest some of its assets.
ESL is a hedge fund owned by Sears Holdings chairman and CEO Eddie Lampert,and has proposed buying the businesses from Sears for about $500 million. Lampert is Sears Holdings’ largest shareholder with more than 30% ownership.
The hedge fund has also proposed the purchase Sears’ real estate, along with $1.2 billion in debt. Sears would then lease the stores and continue to operate its brick-and-mortar operation.
The Hoffman Estates-based retailer has been looking to sell additional assets for about two years while closing hundreds of stores.
Last year the retailer sold its Craftsman tool brand to Stanley Black & Decker for nearly $900 million and has since begun selling the Kenmore brand via Amazon.