August 15, 2018 / 12:04 AM / a month ago

Sears CEO's hedge fund offers to buy its appliance brand for $400 mln

Aug 14 (Reuters) - A hedge fund owned by the chief executive of Sears Holdings Corp, Edward Lampert, has offered to buy Sears’ Kenmore appliances brand for $400 million in cash, according to a filing with the U.S. Securities and Exchange Commission on Tuesday.

ESL Investments also made an offer to buy the company’s home services division Ship for $70 million in cash, according to the filing by Sears, which included a proposal letter. It said the offers were made in a letter to Sears’ board.

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

Lampert said in April that Sears should sell its Kenmore brand, home improvement businesses, and real estate, and that ESL Investments would bid in any sale.

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

In its fiscal first quarter, ended May 5, Sears reported a net loss attributable to the company of $424 million, or $3.93 per share, compared with a profit of $245 million, or $2.29 per share, a year earlier. The company’s store closures brought down its revenue by nearly 31 percent in the first quarter. (Reporting by Kanishka Singh in Bengaluru)

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