Sears shares spike on Lands' End news
The retailer says it's considering spinning off its clothing line along with its auto center businesses, and investors applaud.
The retailer put out a press release in the morning detailing plans to transform the business.
Sears says that it's considering spinning off its Lands' End business and Sears Auto Center business.
Here's an excerpt from the release:
We are evaluating separating both our Lands' End business and Sears Auto Center ("SAC") business. We believe separating the management of these two businesses from Sears Holdings would allow them to pursue their own strategic opportunities, optimize their capital structures, attract talent, and allocate capital in a more focused manner while bringing our business unit structure to life outside of the Sears Holdings portfolio.More from Business Insider
Regarding Lands' End, we believe that Lands' End is an iconic brand with the potential to become a more global brand, and we presently anticipate that any separation, if pursued, would not be structured as a sale but rather through a transaction that would allow existing shareholders the opportunity to benefit from the significant potential for value creation over the long term.
I'm not sure why you'd even try to spin off Lands' End. In its prime, Lands' End was a decent quality product which was supposed to be a value alternative to LL Bean. The problem with Lands' End product is in the details, particularly the little ones that make the difference between the product getting the job done when you need it to and the product failing. Their Gore Tex rain gear was a good value at 60 bucks per piece. Problem: toggles on the hood were poorly designed. In a wind-driven rain, you'll never be able to cinch the hood so it stays on your head. This is a long-past-its-prime brand which needs a major overhaul if it has any chance of surviving. You can go to any outdoor or tactical retailer and find product one or two grades better for the same or less money; you can also go to the same retailers and find top of the line product at prices which represent much better value.
The best spin off candidates are Craftsman and Die Hard. If you put these brands in the hands of people who understand the product and know how to run a business, you will have two sure-fire winners.
SEARS is the new CEO playground.
join up, make your millions, and no one is surprised when their performance doesn't change.
living off other people's money! today's big money game!
you need better quality if you think lands End will go global. maybe a name change would help. "End" is not a catchy word.
How about for a free tip that cost you nothing? Feel bad paying the C.E.O.'s millions yet?
Kudos for that!
In my opinion, Lands' End's primary target market is still struggling financially. I'd love to buy some of LE's Made in USA goods....but haven't been buying anything for a while now. Hope they can survive.
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