Sears Holdings Corp. will explore the possible sale of several assets, including its Kenmore brand, as Chief Executive Officer Edward Lampert aims to salvage what’s left of the struggling retailer.
ESL Investments Inc., the hedge fund run by Lampert, last month urged the company to sell the Kenmore brand and other business units, noting at the time that it would be interested in acquiring them. Sears said in a statement Monday that a special committee of the board of directors is initiating a formal process to explore the asset sales.
Shares surged as much as 15 percent before the start of regular trading in New York. Shares closed up $0.23 at $3.65 on Monday. Sears stock was down 4.5 percent this year through Friday’s close.
The once-dominant retailer has faced an uphill battle trying to restore its former glory. Lampert has used his own money to keep Sears afloat amid declines in store traffic and sales. Sears has closed hundreds of stores and cut more than $1 billion from annual expenses.
