Sears Holdings Spins Off Brands And Affiliates On News Of Losses

Sears Holdings Chairman Eddie Lampert plans to spin off Sear’s Land’s End brand and is considering selling Sears Canada. Lampert hopes to raise $2 billion with the sale. The decision is likely in response to Sears’ most recently quarterly earnings, in which the company hemorrhaged $2.4 billion. Sears bought the brand in 2002 for $1.86 billion. With inflation, and counting the cost of incorporating it into its stores, they stand to lose money on the deal, overall. Sears is also closing up to 182 stores, but will likely have liquidity problems before it is able to sell off the valuable real estate. Lampert moved to protect suppliers from a potential Sears default recently, purchasing trade receivable put agreements equivalent to 80% of Sears’ purchase orders.