Sears rallies as it explores sale of Kenmore brand, other assets
Sears rallied on Monday after saying it is initiating a formal process to explore the sale of its Kenmore brand, home improvement products business and parts direct business.
Sears Holdings Corp.
$0.37
11:09 29/10/18
The company had already said that hedge fund ESL Investments, founded by billionaire investor Eddie Lampert, who is the chief executive officer of Sears, had sent a letter to its board expressing an interest in participating as a purchaser of all or some of the sale assets.
The company said there can be no assurances that any formal detailed proposal will be made by ESL or any third party purchaser, or as to the terms of any such proposal.
Sears, which has set up a special committee to review the proposal from Lampert, said it does not intend to comment further on the sale assets unless and until it determines that additional disclosure is appropriate.
"As previously disclosed in our annual report, the company is exploring ways to unlock value across a range of assets, including the sale assets."
The special committee will also explore "any other alternatives with respect to the sale assets that may maximise value for the company", it said.
At 1500 BST, the shares were up 5.6% to $3.61.