Winnipeg Free Press - PRINT EDITION

Sears to make Land's End separate firm

  • Print

HOFFMAN ESTATES, Ill. -- Sears Holdings Corp. said Friday it will spin off its Land's' End clothing business as a separate company by distributing stock to the retailer's shareholders.

It's the latest move by the struggling retailer to turn around its results as it faces wider losses and increasingly displeased investors.

Sears had said in October it was considering separating the Land's End and Sears Auto Center businesses from the rest of the company. It did not mention Sears Auto Center in Friday's announcement.

Belus Capital Advisors analyst Brian Sozzi said the move shows Sears was unable to get a buyer at the right price for Land's End and may raise questions about how much other well-known brand names Sears owns, such as Craftsman, are worth.

"It makes you question the value of what Sears is sitting on," he said. "It may have to continue dismembering itself to stay alive today and shrink from inside out."

Sears has spun off other businesses over the past two years, including its Hometown and Sears Outlet stores and its Orchard Supply Hardware Stores, to raise cash.

Sears chairman and CEO Edward Lampert disclosed recently his stake in the company has been reduced to less than 50 per cent as investors pulled money out of his hedge fund.

The news underscores the intense pressure facing the billionaire hedge-fund manager, who took over as CEO in February to turn around the business.

Sears and the company's Kmart chain have struggled as rivals have lured away customers over the years.

Last year, Sears announced plans to restore profitability by cutting costs, reducing inventory, selling off some assets and spinning off others.

-- The Associated Press

Republished from the Winnipeg Free Press print edition December 7, 2013 B10

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Chief justices breakdown cameras in courtroom project

View more like this

Photo Store Gallery

  • Marc Gallant/Winnipeg Free Press. Local- Peregrine Falcon Recovery Project. Baby peregrine falcons. 21 days old. Three baby falcons. Born on ledge on roof of Radisson hotel on Portage Avenue. Project Coordinator Tracy Maconachie said that these are third generation falcons to call the hotel home. Maconachie banded the legs of the birds for future identification as seen on this adult bird swooping just metres above. June 16, 2004.
  • A female Mallard duck leads a group of duckings on a morning swim through the reflections in the Assiniboine River at The Forks Monday.     (WAYNE GLOWACKI/WINNIPEG FREE PRESS) Winnipeg Free Press  June 18 2012

View More Gallery Photos

Poll

What are you most looking forward to this Easter weekend?

View Results

View Related Story

Ads by Google