Sears Puts Kenmore, Craftsman Up for Grabs
[Matthew Rocco]
August 25, 2016

Sears Holdings (NASDAQ:SHLD), which booked another loss in the second quarter, has received interest from a variety of companies eyeing the floundering retailer’s familiar appliance, tool and auto brands.

The Illinois-based company has grappled with challenges at Sears and Kmart, two chains that struggling to turn things around in a tough environment for retailers. Target (NYSE:TGT), Kohl’s (NYSE:KSS) and others have recently reported weaker sales as shoppers spend more online. Sears is facing some broader issues. The company has posted red ink for the last six fiscal years, and 78 additional Sears and Kmart stores will be closed by the end of the summer.

In May, Sears announced plans to seek out buyers or partners for its Kenmore, Craftsman and DieHard brands, hoping to unlock the value of three brands that are well-known in their respective categories. The company provided an update on Thursday, saying it continues to explore strategic alternatives for the brands—housed under a division known as KCD—and Sears Home Services. Sears is considering “potential partnerships or other transactions that could expand distribution of our brands and service offerings to realize significant growth,” the company said in a statement.

So far, Sears has heard from domestic and international retailers, original equipment manufacturers, investors and other firms. Sears expects to continue its assessment over the next few months.

Sears already has a partnership with Ace Hardware, which sells Craftsman tools within its stores. Kenmore appliances and DieHard auto parts are exclusive to Sears, Kmart and Sears Auto Centers. Kenmore recently expanded beyond its traditional appliances into high-definition televisions.

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