Sears Might Sell Off an Iconic Brand

CEO offers to buy Kenmore through his hedge fund
By Newser Editors and Wire Services
Posted Apr 23, 2018 12:57 PM CDT
Sears Might Sell Off an Iconic Brand
The Kenmore Elite Smart Electric Dryer and Front Load Washer, center, appears on display at a Sears store, in West Jordan, Utah.   (AP Photo/Rick Bowmer, File)

Sears' biggest shareholder appears to be pushing for a breakup of the 125-year-old company that has survived two world wars and the Great Depression. Chairman and CEO Edward Lampert—whose hedge fund has forwarded millions in funding to keep the ailing chain afloat—has asked the struggling retailer to sell its prominent Kenmore appliance brand and its home improvement business, the company said Monday. His private equity firm, ESL Investments, said it might buy the assets if the company is willing to sell. That sent shares of Sears Holding Corp., which have lost more than 70% of their value in the past year, up nearly 5%. Lampert, who combined Sears and Kmart in 2005 after helping bring Kmart out of bankruptcy, has long pledged to turn the company's fortunes around, per the AP.

He said the retailer would find ways to capitalize on its best-known brands like Kenmore appliances and DieHard car batteries, as well as its vast holdings of land. But as the company has seen shoppers move on to Target, Walmart, and Amazon, and has closed hundreds of stores, cut costs, and sold brands to deal with falling sales, Lampert now appears to have reconsidered. In his letter to the board, Lampert said Sears has been trying to sell the Kenmore businesses for nearly two years but has been unable to do so. "In our view, pursuing these divestures now will demonstrate the value of Sears' portfolio of assets, will provide an important source of liquidity to Sears and could avoid any deterioration in the value of such assets," he wrote. (Business Insider has the full letter.)

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