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Sears seeks to stem bleeding: closes more stores, sells Craftsman brand

Scorpio

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#1
Sears seeks to stem bleeding: closes more stores, sells Craftsman brand

Nathan Bomey , USA TODAY Published 8:41 a.m. ET Jan. 5, 2017 | Updated 1 hour ago
bleeding by closing another 104 stores, including 78 Kmart locations, and selling its Craftsman brand to raise cash.

The ailing retailer said Thursday that it had reached a deal to sell the tools brand to Stanley Black & Decker for a net present value of about $900 million, including future royalty payments.

The move came several months after Sears put the Craftsman, Kenmore and DieHard brands up for sale as it seeks an elusive turnaround.

The company said late Tuesday that it would close 78 Kmart stores and 26 Sears stores, calling it "a difficult but necessary step as we take actions to strengthen the company’s operations and fund its transformation."

Those closure announcements came only eight days after it announced separate plans to close 30 Kmart locations and 16 Sears stores.


Sears also announced Tuesday that it had landed access to $500 million in secured loans provided by Sears CEO and Chairman Edward Lampert's ESL Investments. Lampert has invested heavily in Sears as he attempts to revitalize the retailer.

Sears shares rose 11% in pre-market trading Thursday to $11.50. Stanley Black & Decker stock rose 0.5% to $117.

Taken together, the steps reflect Sears' latest bid to stay afloat in a retail market that is weakening big-box chains, including competitors such as Macy's and Kohl's. Macy's on Tuesday identified 68 stores it will close or that have already closed and said it will correspond with about 6,200 job cuts, including management positions at central operations.

Selling the Craftsman brand to Stanley Black & Decker bolsters the balance sheet for Sears, which reported a $748 million loss in its fiscal quarter ended Oct. 29 as sales at stores open at least a year fell 7.4%.

The chain will still operate more than 1,300 stores following the latest closures and will continue to sell the Craftsman brand.

Stanley Black & Decker said it would expand sales and manufacturing of the Craftsman brand, which currently gets 90% of its sales from Sears locations.

"This transaction represents a significant step in our ongoing transformation to a membership focused business model," Lampert said in a statement. "Craftsman has a storied history as an iconic American brand and in Stanley Black & Decker we have found a great owner that is committed to expanding Craftsman and helping it to reach its potential outside of its current channels."

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

http://www.usatoday.com/story/money/2017/01/05/sears-kmart-stanley-black-decker-craftsman/96191312/
 

glockngold

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#3
Wow,
$900 M for Craftsman with royalties???
That seems like a really big number to me.............
Indeed, The Craftsman brand has been on a downward spiral along with Sears.
It saddens me. It used to be good stuff that you could depend on.

How does this work to advantage for Stanley?
They will just be competing with themselves, which they already do: MAC, Proto, Bostitch, Porter-Cable, Dewalt,Blackhawk,Husky
 
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BackwardsEngineeer

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#4
When you can't grow or steal market share you buy it. Gotta do something even if its wrong....
 

ErrosionOfAccord

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#6
Maybe Trump bought Craftsman and is bringing it back to the states. I jest of course.
 

Professur

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#7
Here's where they lose me. Sears has no value beyond brand recognition. How can they 'stem the bleeding' when they've sold all the damn bandages?
 

searcher

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#8
Sears to close 150 stores and sell its famous Craftsman tool brand for $900M in a bid to keep the company afloat
  • The former retail giant will sell its tool brand to Stanley Black & Decker Inc
  • Craftsman products will still be sold at Sears and Kmart
  • Stanley wants to sell the brand in more stores outside of Sears
  • It's uncertain as to how many workers will be affected by the store closures


Read more: http://www.dailymail.co.uk/news/article-4093190/Sears-shutter-150-stores-sell-famous-Craftsman-tool-brand-900M-company-afloat.html#ixzz4Uwhlsg8M
Follow us: @MailOnline on Twitter | DailyMail on Facebook
 

andial

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#9
I just hope the young folks out there get a chance to rob these shithole retailers before they all go under. No one is thinking about the kids here.
 

Joe King

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#10
Morbid curiosity got the best of me yesterday and I ended up going to Sears to view the carnage first hand. I hadn't been in a Sears in many years. Just to give an idea of how long that's been, you couldn't hardly find a parking spot. This time I got front row parking.

I must say that I was a bit surprised at some of what I saw. The store, while not very busy, (this was at 1PM) it did have some customers and it seemed to be fully stocked. No empty shelves or out of place merchandise and lots of stuff marked at least 60% or 70% off. I actually did a bit of real shopping, but didn't actually buy anything. Although the friend that went with me did buy a few things. I almost bought a winter jacket that was on sale for $28, but decided the jacket I already had would get me through the rest of the season.
Neither of us had planned on doing anything more than a quick walk through expecting to see a ghost town. It wasn't and we were probably in the store close to an hour.

Probably still won't be back very soon, but it wasn't what I had expected.