American multinational Sears Holdings Corp. on Friday said it would spin off its Lands' End clothing business. Lands' End will be another addition to the assets the company is shedding as it suffers mounting operating losses and declining sales.
According to Reuters, Sears has been selling or spinning off assets and closing stores for the past few years to try to turn its business around. The company operates Sears department stores and the Kmart discount chain. Sears is controlled by American investor Edward Lampert.
Lands' End sells casual clothing, accessories, footwear, and home products online, through catalogs and in stores. It was bought by Sears in 2002, the report said.
Lands' End generated sales of USD1.59 billion last year, down from USD1.73 billion in 2011. It expected to report net income of between USD12.7 million and USD14.2 million for the third quarter ended November 1, Reuters said.
The report, citing Sears' regulatory filing, said the spinoff will be through a pro rata distribution of Lands' End shares to Sears shareholders.
Lampert's hedge fund, ESL investments, owns about 48.8% of Sears and will own an identical stake in lands' End following the spinoff, Reuters said.
Lands' End plans to list on NASDAQ. Sears and Lands' End, however, provided no timetable for the selloff and share listing, the report said.
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