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

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Tags

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