Sears’s Latest Strategy: Lands’ End and Auto Center Spinoffs
Sears Holdings Corp. (NASDAQ:SHLD) is struggling to keep its head above water, but CEO Edward Lampert had another sales strategy to pitch this week.
According to Bloomberg, Lampert announced Tuesday that Sears is now considering separating its Lands’ End and Auto Center businesses from the rest of the company. Though neither of the entities would be sold, their separation could help Sears raise cash and curb its revenue slide while allowing shareholders to benefit from the units’ separate significant values.
The new game plan reflects just one of many that Sears has tried as it continues to cut costs and lower its debt, but Lampert exuded confidence in the strategy on Tuesday as he explained that shareholders could eventually see rewards from a profitable Lands’ End spinoff and a repositioned Sears Auto Center that focuses on services other than tires.