Sears CEO Edward Lampert's Hedge Fund Offered to Buy Sears’ Kenmore Appliance Line
HOFFMAN ESTATES, IL — A hedge fund owned by the CEO of Sears offered to buy the embattled retailer’s appliance brand, Kenmore, according to a report from Reuters.
Sears CEO Edward Lampert's hedge fund offered to buy Kenmore for $400 million in cash, according to a filing with the U.S. Securities and Exchange Commission on Tuesday.
The offer is contingent on obtaining equity financing from an unnamed potential partner. Sears created a board committee to evaluate the proposal.
The hedge fund, ESL Investments, also offered to buy Sears’ home services division Ship for $70 million, according to the filing.
Sears reported a net loss of $424 million in the first fiscal quarter ending May 5, or $3.93 per share, compared with a profit of $245 million, or $2.29 per share, according to Reuters.
The offer comes as Sears has continued to shrink in a difficult brick-and-mortar retail environment. It announced this year that it will close 62 Sears and 16 Kmart locations in September.
Sears closed more than 500 stores over the 15 months before May 5, when it had about 900 stores left.