Sears pops after saying its looking into selling assets (SHLD)
AP
Sears is rising after the company announced it is exploring the sale of some of its assets.
CEO Eddie Lampert's hedge fund, ESL Investments, is interested in some of the assets, particularly Kenmore.
The stock has risen substantially in the past several weeks since news of the sale.
Sears is jumping more than 6% Monday after the struggling retailer announced that it is exploring the sale of some of its assets.
Sears will put Kenmore, one of its home improvement businesses, up for sale, along with Sears Home Improvement Products, and Parts Direct, the company announced in a press release.
"Sears Holdings Corporation (the "Company") (NASDAQ: SHLD) today announced that a special committee of the board of directors (the "Board") of the Company (the "Special Committee") is initiating a formal process to explore the sale of its Kenmore brand and related assets, the Sears Home Improvement Products business of the Sears Home Services division and the Parts Direct business of the Sears Home Services division (collectively, the "Sale Assets")," Sears said.
One potential buyer for all or some of the assets is Sears CEO Eddie Lampert's hedge fund ESL Investments. The fund is said to be particularly interested in the Kenmore brand.
Lampert's fund values Sears' home improvement and Parts Direct businesses at $500 million collectively, which is well above Sears' entire market cap of $347.57 million.
Sears is down 56.3% this year.
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