Sears CEO Lampert's Battle to Turn Sears Around

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July 11 (Bloomberg) -- Bloomberg Businessweek's Mina Kimes discusses Sears woes with Sara Eisen on Bloomberg Television's "Market Makers." (Source: Bloomberg)

This is "market makers." i'm sara eisen.

Eddie lampert is the billionaire chairman and ceo of sears and his leadership may be the biggest problem for the retailer.


He is running it like a hedge fund.

The story is out in this week's "bloomberg businessweek" and with us is the author.

Nina, i know you did a lot of investigative reporting, including seeking to more than former -- 40 former employees.

What is different about his file?

About five years ago when he was chairman, he implemented a model in which he divided the company in what could best be described as fiefdoms.

Each competing for the money and investment and almost looked at him like a hedge fund manager.

He is a hedge fund manager, obviously.

His hedge fund is just that.

How does what you see at sears beyond the fiefdoms mirror what you might think of hedge fund?

I think his motivation in creating the model -- he wanted better data.

Big on metrics.

Big on metrics.

He wanted to look at them as investments.

He wanted each of them to prove themselves to him, showing they could generate returns.

Give us specific examples about the different businesses and how the competition is so fierce?

More than 30 different business units.

Some are traditional product they -- product based like appliances, tools, and beauty.

And others that support businesses like legal and id.

Even those are autonomous businesses.

The idea is, if you run appliances or craftsman tools, you could use the in-house i.t. or go of house and hire a contractor.

Who does he hide her to these businesses?

What type of people?

M he showed a tendency to hire people from technology and finance.

Less retail?


I think that has been one of the problems.

There is no question that sears as a retailer has not been doing well.

Sales have been going down.

Usually a good indicator of whether the brand of the very least is succeeding.

The stock has been going up.

How do you reconcile the two?

Eddie lampert and his hedge fund owns a lot of the stock.

So, many analysts say it is much a like a normal stock because so much a support or his ownership.

There is a case to be made that there is still value in the real estate.

Supportive of the stock price in a lot of situations.

Some people say, though, it is a bit of false hope because sears retail locations are not -- i am no real estate expert, but i heard many say they are just not prime real estate the way that some other retailers are.

And kmart as well.

Sears mall then we all know how malls are doing.

Not particularly well.

Any indication he might change strategy?

When i e-mailed with him a bit -- what does he say?

He defended his strategy.

He said this is the best way to run this company, to get the information he wants.

He is confident in the long run it will deliver results?

One point he made is that the strategy makes it easier for him to divest some businesses.

Which he has done.

There is a lot more detail on your story so we encourage you to check out the new "bloomberg businessweek." mina kimes is the writer.

You can get the latest addition hitting the newsstands.

And erik love the cover.

-- love the cover.

A great talking point.

Apple the big loser in the big e-book price fixing case.

Who is the winner?

When we return.


This text has been automatically generated. It may not be 100% accurate.


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