Sears Holdings has formed a special board of directors committee to initiate a formal process to explore the sale of its Kenmore brand and related assets, as well as the Sears Home Improvement Products and Parts Direct business of its Sears Home Services division.
As the company previously reported, the board received a letter from ESL Investments expressing interest in participating as a purchaser of the sale assets, in full or part. Edward Lampert, Sears Holdings chairman and CEO, is chairman and CEO of ESL Investments, which, through its funds, is the largest Sears Holdings shareholder and a lender to the retailer.
According to the company, the board established the special committee, which consists solely of independent directors, to evaluate ESL’s proposal, to actively solicit third-party interest in the sale assets, and to explore any other alternatives with respect to those assets that may maximize Sears Holdings value. The special committee has retained Centerview Partners as its investment banker and Weil, Gotshal & Manges as legal counsel.
Sears stated that it could offer no assurances that ESL or a third party will make any formal detailed proposal regarding the potential sale or if any proposal will ultimately prove acceptable. The company noted that it does not intend to comment further on the potential sale until it deems appropriate.