Sears Holdings, the struggling retailer run by the hedge fund manager Edward S. Lampert, said on Friday that it had filed to spin off its Lands’ End business by distributing shares to investors.
The company said it expected the spinoff to be tax-free for shareholders in the United States, except for any cash received in lieu of fractional shares. The move is subject to approval by the board of Sears Holdings.
Faced with plummeting sales and other challenges, Sears first announced in October planned to spin off Lands End to raise cash. The company had long faced pressure from competitors including Walmart, Target and Home Depot, while online shops like Amazon and others have forced brick-and-mortar stores to cut prices.
Sears acquired Lands End in 2002 for $1.9 billion. The spinoff of the company would follow Sears’ sale of another business, Sears Home and Outlet Stores. The company may still try to find a buyer for Sears Auto Centers. Some analysts have contended that the company will continue a liquidation process that could include Kenmore and Craftsman, two brands named as possible targets, as well as some of the company’s real estate holdings.
