Categories Retail

Sears looking at Kenmore sale

Sears Holding Corp. (SHLD) has started the official process to explore the sales of its Kenmore brand along with its home service and parts businesses. Last month, CEO Eddie Lampert had urged the board to sell off certain parts of the business and had even offered to buy them.

Lampert, a major shareholder in Sears through his hedge fund ESL Investments, could end up eventually buying Kenmore. Sears has appointed a special committee to oversee the sales process. The news sent Sears’ shares soaring for a brief time before retreating to a modest pace.

Sears has been struggling for a long time and the company is trying to stay afloat through store closures, cost-cutting and debt repayment extensions. The retailer sold its Craftsman brand last year to Stanley, Black & Decker.

It also sold over 200 stores to a real estate firm where Lampert is a stakeholder. Along with the Kenmore brand and its two business divisions, ESL also offered to buy real estate assets from Sears. ESL said its aim was to get the highest value possible for Sears.

Over the past couple of years, Sears has split parts of its business and sold them off. It also continues to close down several of its stores. These measures are expected to help reduce debt and bring in more cash.

The company recently entered into an agreement with Amazon (AMZN) for the purchase and installation of tires. Despite these efforts and Lampert’s optimism that Sears could regain profitability, there still remains doubts that that the company will be able to survive.

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top