Sears is exploring a sale of its home improvement business following interest from potential suitors such as private equity firms, people familiar with the matter said on Wednesday.
The struggling U.S. retailer's Sears Home Services division has emerged as a coveted asset during the COVID-19 pandemic, as consumers embark on renovations while they stay home.The division is one of the department store operator's few crown jewels following its bankruptcy in 2018 and US$5.2 billion sale to hedge fund manager Eddie Lampert, who was already its biggest shareholder and creditor.
Transformco could also sell a stake in Sears Home Services and retain some ownership of the business, one of the sources said, cautioning that a deal may not come together at all. Costco Wholesale Corp earlier this year acquired Sears' logistics business Innovel Solutions for US$1 billion, allowing the company to refinance its debts. Sears last year also sold its DieHard battery brand to Advance Auto Parts for US$200 million.