The struggling retailer continues to shed assets in attempts to curb losses
The board of directors at Sears Holdings Corp. has officially approved the separation of its Lands’ End brand—and set March 24 as the date when its shares would be distributed.
The company, which operates the Sears and Kmart chains, has been closing stores, selling, and spinning off various arms for years in an attempt to stem the tide of revenue losses since CEO Eddie Lampert combined Sears and Kmart in an $11 billion deal in 2005.
A Sears store in Connecticut (courtesy of Zimbio.com)
Following the spin-off, Lands’ End will be a publicly traded company independent from Sears Holdings, which will not retain any Lands’ End common stock. Sears Holdings will continue to be listed on the NASDAQ Global Select Market under the symbol “SHLD,” while Lands’ End expects to list its common stock on the NASDAQ Capital Market under the symbol “LE.”
Gary Balter, an analyst at Credit Suisse, wrote to his clients upon the announcement of the spin-off in December 2013 that it, “essentially points to a number of negatives, including an inability to find a buyer, as previously Lands’ End was listed as an asset that the company would monetize.”
In the distribution, stockholders will receive 0.300795 shares of Lands’ End common stock for each share of Sears Holdings common stock held as of 5:30 p.m. Eastern time on March 24.