Retail

Sears is reportedly exploring potential asset sales, including its DieHard brand

Key Points
  • Sears' current owner is exploring potential assets to sell off, including its DieHard brand, The Wall Street Journal reports.
  • The company has hired investment bankers to advise on the potential asset sales, people familiar with the situation told the Journal.
  • Sears was bought by its former CEO, Eddie Lampert, through an affiliate of his hedge fund ESL Investments earlier this year.
A man walks by a Sears store.
Andy Clark | Reuters

Sears' current owner is exploring potential assets to sell off, including its DieHard brand, The Wall Street Journal reported.

Transform Holdco, the retailer's parent, has hired investment bankers to advise on the potential asset sales, people familiar with the situation told the Journal.

Sears did not immediately respond to CNBC's request for comment.

Sears was bought by its former CEO, Eddie Lampert, through an affiliate of his hedge fund ESL Investments earlier this year. But the company seems to be facing some of the same problems that led it to file for bankruptcy more than a year ago.

It is still struggling to find its footing and losing customers to rivals such as Walmart, Target and Amazon. It has focused on smaller store formats and unveiled a new logo in an effort to bring new life back into the business. But the stores are struggling to keep goods stocked, according to multiple media reports.

And it continues to shutter stores.

DieHard battery
Source: DieHard

Lampert previously promised employees and the bankruptcy court that the company could preserve roughly 45,000 jobs. He and his partners also said they would enhance the retailer's performance by running only 425 of its profitable stores, rather than the roughly 700 stores it had when it filed for bankruptcy.

According to the paper, Sears recently borrowed $150 million from lenders, including Lampert. Selling off assets would also provide it with more cash.

Prior to its bankruptcy, Sears had tried to sell assets. It had been successful in striking a deal with Stanley Black & Decker to acquire the Craftsman brand in 2017.

Read the full story in The Wall Street Journal here.

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