Sears Holdings said Friday that it will spin off its Lands' End clothing business as a separate company by distributing stock to the retailer's shareholders.
The retailer had said in October that it was considering separating the Lands' End and Sears Auto Center businesses from the rest of the company. It did not mention Sears Auto Center in Friday's announcement.
Sears has spun off other businesses, including its Hometown and Sears Outlet stores, to raise cash.
Sears Chairman and CEO Edward Lampert disclosed recently that his stake in the company has been reduced to less than 50 percent as investors pulled money out of his hedge fund.