Oct 29, 2013
Sears may separate Land's End, Auto Center businesses
Oct 29, 2013
Sears Holdings Corp is considering separating its Lands' End clothing and Sears Auto Center businesses into independently managed operations as part of its turnaround plan, after another quarter of declining same-store sales.
The company, headed by hedge fund manager Eddie Lampert, said on Tuesday same-store sales for the 12-weeks ended Oct. 26 fell 3.7 percent.
Sears said it expects to post a net loss of between $532 million and $582 million for the third quarter ending Nov. 2.
Sears' sales have declined since 2005 as the company battles intense competition from Target Corp, Wal-Mart Stores Inc and Amazon Inc.
Sears reported a 1.5 percent fall in same-store sales for its second quarter.
The company launched a turnaround plan last year, and has been closing stores, selling real estate and shedding assets.
The company said on Tuesday Sears Canada Inc, in which it holds a 51 percent stake, would sell five store leases to Cadillac Fairview Corp Ltd for C$400 million.
Sears said the separation of the Lands' End and Auto Center businesses would help it focus on its core businesses. The company also said it was looking to close more underperforming Sears and Kmart stores.
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