Sears Holding Corp. is parting ways with its Lands Ends company inorder to bring in more money The Chicago Tribune reported Friday.
"Sears is in a steady state of decline," Brian Sozzi, chief executive of Belus Capital Advisors told The Tribune. "They're essentially selling their body parts so they stay alive today."
The news is the latest development for the retailer who has been reducing its businesses in recent years in an attempt to revive itself.
"The spinoff announcement essentially points to a number of negatives, including an inability to find a buyer, as previously Lands' End was listed as an asset that the company would monetize," Credit Suisse analyst Gary Balter said in a note to clients The Tribune reported. "This spinoff is another wooden block being pulled out in our Jenga scenario, with Lands' End likely the most profitable piece that was left in the company."
The news of what was then a possibility was first introduced last March.
"It could be a very good thing for Lands' End to get out from underneath that mess," Jim Seward, an associate professor at the University of Wisconsin-Madison School of Business told The New York Post. Seward is also a faculty director of the Nicholas Center for Corporate Finance and Investment Banking.
Sears purchased Lands End in 2002, and brought in $1.59 billion in sales revenue. This is a decrease compared to $1.72 billion in 2011.
The retailer has also dealt its Orchard Supply Hardware Store in 2011. Its Sears Hometown and Outlet business was sold in 2012.
Sears's decline in sales dates back to hedge fund manager Eddie Lampert's efforts to join the retailer with Kmart in 2005 for $11 billion.
Lampert became chief executive officer in February, and has received flack for the amount of money he put towards the company.
