Spin-offs can work out well in some cases (right, Frasier fans?) and not so well in others (yep, we mean you, Joey) and in dealing with its Hometown, Outlet and some hardware stores, Sears is hoping everything goes swimmingly with the formation of a completely separate and publicly traded company.
Well, almost completely separate — Sears’ chairman has an investment company that will own a majority stake in the newly formed business, says the Associated Press.
In late 2011, Sears had announced it would simply be closing some stores this year, due to disappointing holiday sales. Right now there are a total of 1,238 possible stores that could make up the new company, after five Hometown stores, eight hardware stores and one Outlet store were shuttered.
Sears is probably hoping that it’s got a Frasier on its hands, instead of a potential Joey disaster. It’s been trying to rescue its drowning brand with moves like this as well as a spin off of its stake in the company’s Canada division, and get the entire company back into the black and investors’ good graces.
Previously in Sears’ flailings: Report: Sears Is Failing Because It Spends Next-To-Nothing To Maintain Stores