Lampert Seeks to Sell, Re-License Sears' (SHLD) Lands' End Segment
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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.
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