Sears is considering separating its Lands' End and Sears Auto Center businesses from the rest of the company. The retailer also plans to continue closing some of its unprofitable stores as it moves ahead on its turnaround efforts.
Sears Holdings has been working for some time to cut costs and lower its debt. The company said Tuesday that it would likely pursue a spinoff of Lands' End and not a sale. The retailer also said that it has already started repositioning Sears Auto Center around services other than tires and is evaluating strategic options for the business.
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Sears anticipates closing unprofitable stores, including those locations whose leases are set to expire soon. The retailer said that it would take the capital from the unprofitable locations and redeploy it elsewhere.