Lampert Seeks to Sell, Re-License Sears' (SHLD) Lands' End Segment
Tweet
Share
E-mail
Get Alerts SHLD Hot Sheet
Join SI Premium – FREE
It's curtains for you, Lands' End. At least its current employment by Sears Holdings (Nasdaq: SHLD), anyway.
According to reports from the NY Post, Sears is mulling the sale of its Lands' End segment.
Chairman Eddie Lampert -- who likely enjoys giving Lands' End pleated chinos and quick-dry swim trunks as swank holiday gifts -- might seek up to $2 billion in a potential deal.
The Post said Sears may tap Goldman Sachs to advise on the matter.
Since announcing efforts to raise $750 million by selling 11 stores and spinning-off smaller stores, Sears has cut deals to sell three locations for a total of $170 million.
Ideally, Sears doesn't want to end its relationship with Lands' End -- which has styling on-par if not better than category benchmark L.L. Bean -- completely; it would seek to find a buyer willing to license-back the operation to Sears while aiming for growth elsewhere.
Sears bought Lands' End in 2002 for a handsome sum of $1.85 billion. Since the acquisition, analysts believe Lands' End -- whose low-cut V-necks are ironically enjoyed by hipsters everywhere -- hasn't grown much, contributing about $150 million to $200 million in EBITDA per year. Based on lack of growth and an unsteady retail environment, analysts also believe a deal might fetch something within the range of $1.2 billion to $1.6 billion.
Sears is up over 4 percent early Thursday morning.
According to reports from the NY Post, Sears is mulling the sale of its Lands' End segment.
Chairman Eddie Lampert -- who likely enjoys giving Lands' End pleated chinos and quick-dry swim trunks as swank holiday gifts -- might seek up to $2 billion in a potential deal.
The Post said Sears may tap Goldman Sachs to advise on the matter.
Since announcing efforts to raise $750 million by selling 11 stores and spinning-off smaller stores, Sears has cut deals to sell three locations for a total of $170 million.
Ideally, Sears doesn't want to end its relationship with Lands' End -- which has styling on-par if not better than category benchmark L.L. Bean -- completely; it would seek to find a buyer willing to license-back the operation to Sears while aiming for growth elsewhere.
Sears bought Lands' End in 2002 for a handsome sum of $1.85 billion. Since the acquisition, analysts believe Lands' End -- whose low-cut V-necks are ironically enjoyed by hipsters everywhere -- hasn't grown much, contributing about $150 million to $200 million in EBITDA per year. Based on lack of growth and an unsteady retail environment, analysts also believe a deal might fetch something within the range of $1.2 billion to $1.6 billion.
Sears is up over 4 percent early Thursday morning.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tidewater completes acquisition of Wilson Sons Ultratug
- PayPal tumbles as Advent, Stripe said to drop $50 bln pursuit
- Activist hedge fund Engine Capital has built a 1.5% stake in EPAM Systems - Reuters
Create E-mail Alert Related Categories
Corporate News, Insiders' Blog, Mergers and Acquisitions, RumorsRelated Entities
Edward Lampert, RBS Partners, ESL InvestmentsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
