Sears Considers Splitting Off From Lands’ End, Auto Centers

The retailer has been selling off stores to raise cash

   

Sears retailShares of Sears (SHLD) surged almost 7% in Tuesday morning trading after struggling retailer said it was considering spinning off two units.

Sears announced that it was moving toward a spin-off of its Lands’ End clothing business, instead looking for a buyer. The company also indicated that it is reviewing the future of Sears Auto Center, with an eye toward selling or separating the unit.

DuPont to Spin Off Unit, Split Into 2
DuPont to Spin Off Unit, Split Into 2

Facing declining sales, Sears has recently been selling some of its top-performing stores in a bid to raise cash and reduce expenses.

Sears operates about 2,500 stores across North America. Over the past decade, it has lost significant ground in appliance sales — which it once dominated — to big box home improvement chains.

The retailer purchased Lands’ End, a popular mail-order apparel business, in 2002 for about $2 billion.


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/sears-considers-splitting-lands-end-auto-centers/.

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