ESL Investments (Greenwich, Conn.) has made a formal offer to buy Kenmore, the appliance brand owned by Sears (Hoffman Estates, Ill.), for $400 million. It has also offered $80 million in cash for part of the company’s home services business division.
ESL Investments is a hedge fund run by Eddie Lampert, who is also Chief Executive Officer of Sears.
According to Chain Store Age, if the deal goes through, it could help the department store stay afloat by reducing its debt, extending its maturity profile and alleviating its liquidity challenges.
These offers follow a round of store closures and previous deals to sell off other Sears-owned brands including Craftsman and DieHard.