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.
Sears Holdings Corp. and its board of directors have received a letter from ESL Investments expressing the view that the company should pursue a divestiture of all or a portion of its Kenmore brand and related assets, the Sears Home Improvement business of the Sears Home Services division (SHIP) and the PartsDirect business of the Sears Home Services division.
Sears Holdings has made several moves to restructure some of its finances and said that it expects to improve its net loss in its upcoming third quarter results. However, the company signaled that its comparable store sales for both Kmart and Sears are continuing to decline.
Sears Holdings is closing an additional 63 stores that includes 45 Kmart locations and 18 Sears stores.