Sears May Spin Off Lands’ End

Sears Holdings Corp. (Hoffman Estates, Ill.) is considering separating its Lands' End and Sears Auto Center businesses from the rest of the company. The retailer also plans to continue closing some of its unprofitable stores as it moves ahead on its turnaround efforts.

Disposition of Lands’ End, the Dodgeville, Wis., casual brand it acquired in 2002 for $2 billion, would be a spinoff rather than sale. Sears also said it has already started repositioning its Sears Auto Center around services other than tires and is evaluating strategic options for the business.

Sears has been working for some time to cut costs and lower its debt. It said capital from closing its unprofitable locations would be redeployed elsewhere.

It had previously announced sale of five store leases in Canada to Cadillac Fairview Corp. (Toronto), one of Canada's largest real estate office and retail property managers, for $383.5 million.