Sears Plans to Spin Off Specialty Stores

by Alyssa Oursler | August 13, 2012 9:07 am

Sears (NASDAQ:SHLD[1]), which also owns K-Mart, recently announced a spin-off[2] of its Hometown, Outlet and some hardware stores.

Sears first signaled the split was a possibility back in February, as it began looking for ways to be more profitable and appealing to shareholders. The department store, along with competitor J.C. Penney (NYSE:JCP[3]) has been struggling of late[4]. Department store Macy’s (NYSE:M[5]), on the other hand, has fared much better[6].

The spin-off is expected to raises somewhere between $400 million and $500 million.

Sears has a total of 1,238 Hometown, Outlet and hardware stores and has already closed more than ten of those stores.

Shares of the company were up nearly 9% in pre-market trading on the news. It is up more than 60% year-to-date thanks to a short squeeze[7], but is still in the red 15% for the last twelve months.

  1. SHLD:
  2. recently announced a spin-off:
  3. JCP:
  4. struggling of late:
  5. M:
  6. has fared much better:
  7. thanks to a short squeeze:

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