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Globe/AP say Lampert eyes Sears's Kenmore brand

2018-04-24 08:31 ET - In the News

The Globe and Mail reports in its Tuesday edition that Sears's biggest shareholder has suggested the company sell its Kenmore brand and some real estate holdings, offering itself as a potential buyer. An Associated Press dispatch to The Globe says that the ailing company has sold off other major brands as it struggles to stay afloat, with Kenmore a notable remainder. The private-equity firm ESL Investment, headed by Sears chairman and chief executive Edward Lampert, said it might buy the assets -- Kenmore, Sears Home Services business and its Parts Direct business -- if the company is willing to sell. That sent shares of Sears Holdings Corp., which have lost more than 70 per cent of their value in the past year, up nearly 5 per cent. In his letter to the board, Mr. Lampert said that Sears has been trying to sell the Kenmore businesses for nearly two years, but it has been unable to do so. ESL has not placed a potential value on Kenmore, but said its non-binding proposal gives the services and home-improvement units an enterprise value of $500-million (U.S.). ESL said it also would be open to making an offer for Sears's real estate, including the assumption of $1.2-billion (U.S.) in debt.

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