Sears' board approves spinning off Lands' End clothing business

Fri Mar 14, 2014 8:36pm EDT

Shar Rao shops in the Lands' End section at a Sears store in Vernon Hills, Illinois, November 17, 2004. REUTERS/John Gress

Shar Rao shops in the Lands' End section at a Sears store in Vernon Hills, Illinois, November 17, 2004.

Credit: Reuters/John Gress

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(Reuters) - Eddie Lampert-controlled Sears Holdings Corp (SHLD.O) said on Friday its board approved the spin off on April 4 of its Lands' End clothing business.

The deal, which was announced in December, will make Lands' End an independent, publicly traded company on the Nasdaq stock exchange under the symbol LE.

Lands' End sells casual clothing, accessories, footwear, and home products online, through catalogs and in stores.

Sears stockholders on record as of March 24 will receive about 0.3 shares of Lands' End common stock for each share of Sears they own.

Lands' End is the latest asset that Sears has shed as it struggles with mounting operating losses and declining sales

Sears spun off its Orchard Supply Hardware Stores unit in 2011 and its Sears Hometown and Outlet business in 2012. The company continues to operate its Sears department stores and the Kmart discount chain.

Lands' End will pay a $500 million dividend to Sears before the spin-off financed by a new senior secured term loan. Lands' End may also borrow up to $175 million for working capital through an asset-based senior secured revolving credit facility, Sears said.

(Reporting by Mridhula Raghavan in Bangalore; Editing by Lisa Shumaker)

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Comments (2)
SunnyDaySam wrote:
I used to shop a lot at Land’s End back when Bill End owned it. They had tall sizes in everything. And even though they charged for shipping, there was no sales tax because they didn’t have a presence here in WA. When Sears bought them, they wanted shipping and sales tax, which amounted to 20+% of the order. Also, their formerly great customer service (real people you could call) plummeted into the usual big Corporation abyss. I quit Land’s End at that moment.

Mar 15, 2014 3:01pm EDT  --  Report as abuse
This guy Lampert is obviously clueless in retail, the Sears death spiral continues.

I used to buy Lands End clothing, then Sears bought them and that was the end of that.

Where I used to live one of the main entrances to the local movie theaters was walking through Sears. What an eerie experience. Very few customers, the few salespeople you can find are either in tools or appliances, and the rest of the store is deserted.

Mar 15, 2014 4:12pm EDT  --  Report as abuse
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