Sears Board Explores Sale Of Assets

Sears Holdings Corp (NASDAQ: SHLD) announced Monday it was exploring a sale of its Kenmore brand and related assets, its Sears Home Improvement business and its Parts Direct business.

Why It’s Important

The company’s stock has fallen 59 percent year-over-year as management has struggled to compete in digital commerce. Sears has consistently reported mixed quarterly results, with comps generally down from the previous year’s period.

Last year, a former executive predicted the company would have to strip everything that will "burn above the waterline of this ship" and attempt to float a smaller, more manageable boat. Until now, Sears has resisted this strategy.

Recently, it galvanized the stock through fresh online pursuits, including an extended Amazon.com, Inc. (NASDAQ: AMZN) partnership for tire delivery and installation.

News of more drastic strategic alternatives, though, prompted a 12.3-percent pop in the stock.

What’s Next

A special committee of the board consisting of independent directors is initiating a formal process to evaluate previously reported interest from ESL Investments, to solicit third-party interest and to explore strategic alternatives.

The stock traded around $3.71 at time of publication, up 8.4 percent.

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