Sears Holdings Corp 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. 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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