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Sears Survival Seen in Spinoff as Cash Drops: Retail

For the past two years, Sears Holdings Corp. Chairman Eddie Lampert has argued in his shareholder letters that the company’s future is tied partly to smaller-format stores that sell home goods and hardware.

So when Sears announced it was spinning off a piece of the so-called growth part of its portfolio on Feb. 23, it wasn’t clear whether Lampert, who with his hedge fund owns 60 percent of Sears, was trying yet another strategy to turn around the fortunes of the largest U.S. department store chain or did he have another goal?