Sears May Spin Off Lands' End, Auto Centers

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Oct. 29 (Bloomberg) -- Sears is evaluating the separation of its Lands’ End and Sears Auto Center businesses from the rest of the company and selling store leases in Canada to raise cash as it goes through restructuring. Deirdre Bolton reports on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Struggling retailer.

Separating the lands' end clothing store and the auto center from the main company.

Joining me now is reid ribble in --deirdre bolton.

What is any lamp are going to do -- what is eddie lampert going to do?

A lot of analysts are saying that they are not sure this makes sense.

If you think about the best parts of sears, it is the auto parts, it is lands' end.

If they are taking these out of the mix, eddie lampert is taking these out, what is left?

There is kmart, coles, all kinds of other places you can get close.

-- kohl's, all other places you can get clothing.

Interesting is the idea of a separation rather than a sale.

But analysts said who would want to buy these assets?

There is no market, it seems like it is a questionable decision to separate these two out.

The bigger picture, sears has been struggling.

Revenue down for more than 6 years, 5 straight quarterly losses, comp sales down more than 3.5%. the real asset here is the real estate.

The real estate of the stores sit on.

You go to sears, lands' end.

What do you go to sears for, to the auto shop, lands' end, your fridge rater.

-- your refrigerator.

They gave an update on third quarter performance.

Really the one that analysts are focused on is comp asales, down 3.7%. if you cannot drive traffic in, we have talked about this with other retailers, if you cannot get people in the stores, what is the point?

We have been talking about any lampert -- eddie lampert breaking the company into 30 autonomous businesses that are more or less fiefdoms fighting with each other for resources.

There are not too many people bullish on this company right now.

We will wait to hear more from any -- eddie lampert.

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


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