What’s left of Sears wants to buy what’s left of its onetime division Hometown and Outlet. But there’s more to the story than just a simple acquisition
Share to twitterThe Outlet and Hometown stores could be rejoined with Sears if Eddie Lampert gets his deal. If you’ve ever wondered how Eddie Lampert—the man who bought Sears and Kmart, ran them to within an inch of their retailing lives and then bought them back againEarlier this week, Lampert, who now owns and controls what’s left of Sears and Kmart through his newly formed Transform Holdco,to buy the shares of the Sears Hometown and Outlet company that he doesn’t already own.
Lampert, through his ESL hedge fund, still owns about 60% of the stock of Hometown, and his offer is to buy the rest for $2.25 a share, or about $21 million in total. But here’s the thing: When Hometown was originally separated, the new company paid Sears a $100 million cash dividend and another $346.5for a rights offering. That’s $446.5 million if you’re counting. Likewise, it’s $425.5 million more than Lampert is paying for the remainder of the business just seven years later.
And that, friends, is how Lampert makes money. It’s a technique he’s used many, many times, from selling off Orchard Hardware and Lands End to all kinds of special dividends and financial finagling over the past nearly two decades. Whether this deal gets added to the list is up to the board of Hometown. It's difficult to believe it won't happen given the circumstances on both sides of the equation.
Sears Hometown is in pretty rough shape these days, losing money, running negative comp store sales and generally being starved for capital investment.Read me too on The Robin Report, on Progressive Business Media sites and on my blog,
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Sears to set to open first batch of smaller storesAfter its journey through bankruptcy, Sears is getting ready to open its first batch of smaller stores focusing on appliances, mattresses and home services.
Weiterlesen »
Sears is opening stores again — and this time, it's just selling home goodsThe new stores will be smaller in size — spanning only up to 15,000 square feet, while the average Sears store can be larger than 100,000 square feet.
Weiterlesen »
Sears, after bankruptcy, is opening new stores for home goodsSears will open three 'Sears Home & Life' stores in May, in Anchorage, Alaska; Lafayette, Louisiana; and Overland Park, Kansas.
Weiterlesen »
Amazon's Whole Foods could be a fit for 110 old Sears stores, BMO saysYour local, shuttered Sears or Kmart store could soon turn into a grocery store, according to one investment group.
Weiterlesen »
Sears, after going bankrupt, is opening new stores for home goodsSears will open three Home & Life stores in May, in Anchorage, Alaska; Layette, Louisiana; and Overland Park, Kansas.
Weiterlesen »
Lampert's Sears Shenanigans Continue: Cut Benefits, Empty Shelves And Spooked EmployeesWhile various lawsuits, legal proceedings and negotiations remain ongoing, the slow but steady deconstruction of Sears continues.
Weiterlesen »
Sears Tries Small Stores -- Again. Here's Why They'll Fail -- AgainThis week Sear announced a new off-the-mall format to showcase its once dominant home brands. Alas, it's a repeat of many things that were tried unsuccessfully in the past and it's clearly too little, too late.
Weiterlesen »
Sears Tries Small Stores -- Again. Here's Why They'll Fail -- AgainThis week Sear announced a new off-the-mall format to showcase its once dominant home brands. Alas, it's a repeat of many things that were tried unsuccessfully in the past and it's clearly too little, too late.
Weiterlesen »