Sears CEO's hedge fund offers to buy Kenmore brand for $400M

By MarketsFOXBusiness

Sears continues to fade from the retail landscape

Fox Business Briefs: Sears identifies approximately 100 non-profitable stores and announces plans to close 72 of them; the company has shuttered about 530 struggling locations over the last year.

A hedge fund owned by Sears Chief Executive Edward Lampert, has made an offer to buy the Kenmore brand of appliances for $400 million.

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The offer was disclosed in a filing with the Securities and Exchange Commission, according to Reuters.

ESL Investments is also offering to buy the company's home services division Ship for $70 million in cash.

The offer for Kenmore is conditional on ESL receiving equity financing from a potential partner, according to filing. No partner was named.

Lampert has been interested in selling Sears’ key brands and real estate, with ESL Investments bidding in any sale.

Sears formed a special committee in May to explore the proposal.

Sears reported a net first quarter loss of $424 million, or $3.93 per share, compared with a profit of $245 million, or $2.29 per share, a year earlier.

Revenue fell by nearly 31 percent, mainly due to store closures.