Tag Archives: Sears Holdings

Under Pressure To Deleverage, HNA Exits Hilton Spin Off Investments At Nice Profit

Before trade war news jumped to the front pages, China was making headlines for cracking down on its financial firms’ leverage by forcing them to unload some of their overseas holdings. Anbang and its CEO received a lot of headlines, but other companies, such as HNA, were impacted as well. A few years ago, HNA went on a… Read More »

Hear The Beat Of Dancing Feet From 34th Street- Starboard Disembarks From Macy’s Parade

Last month, we reported that Macy’s(M) outgoing CEO Terry Lundgren was working to head off a proxy fight with Jeff Smith’s Starboard Value. Lundgren was said to be looking to Hudson’s Bay Company(HBAYF) as a white knight under renewed pressure from Starboard to spin off or otherwise monetize its real estate. A month later, Hudson’s Bay is out… Read More »

Bloomberg Gadfly: Abercrombie & Fitch(ANF) Should Spin Off Hollister

This site is approaching its seventh birthday and over the years a number of sectors have featured prominently on these pages. Energy. Media. A smattering of REITs, restaurants and conglomerates. Retail is one sector though that, excluding Sears (SHLD and ugh) hasn’t seen all that much activity so it was exciting to see a rumor pop up yesterday.… Read More »

With Lands’ End Adrift, Can New CEO Jerome Griffith Steer It Back To Dry Land?

Nearly three years after its April 2014 spinoff from Sears Holdings(SHLD), Lands’ End(LE) is fairing only marginally better than its former parent, which is teetering on the edge of bankruptcy. Lands End, which just after its spinoff had a market capitalization of $900 million, is worth just $485 million today. The company has nearly $500 million in long… Read More »

Struggling Sears Suggests That Auto Centers May Be Next Spinoff, Aims To Exit Canada

Every Spring in Chicago gives birth to new hope that this year will be different.  It is rarely long, however, before hopes for this year are dashed and talk shifts to a focus on rebuilding for next year.  We are not talking about the Cubs, but rather about iconic Chicago retailer Sears Holdings(SHLD).  Once again, Sears posted a… Read More »

Barron’s Warns On Heavily Leveraged Lands’ End

Another week, another heavily leveraged spin from Eddie Lampert. Just last week, Sears Holdings(SHLD) shareholders received shiny new shares in Lands’ End(LE).  But Sears received a bigger gift- $500 million in cash paid as tribute by the new company. Lands’ End, like many Sears and Kmart customers, borrowed heavily to give this gift and now will be constrained… Read More »

Just The Beginning For Land’s End As Spinoff From Sears Finally Completed

Land’s End (LE) is now in control of its own destiny. The well-known retailer was spun off from Sears Holdings (SHLD) after the close on Friday and began trading regular way on Monday. Sears shareholders should have received 0.300795 shares of LE for every SHLD share owned. Investors haven’t been too thrilled with the new company and shares… Read More »

Sears Contemplates End Of Lands’ End As It Explores Spin Off Of Iconic Clothing Brand, Auto Centers

It was, some thought, a mismatch from the beginning. When Sears(SHLD) purchased Lands’ End for $1.9 billion in 2002, the New York Times spoke of a union of “pants and power drills”.  The hope of then-CEO Alan Lacy that Lands’ End would revive Sears’ struggling apparel business was never realized. By the time Kmart purchased Sears in late… Read More »

Orchard Supply Taken Out To The Woodshed- Will Sears Holdings Reap What It Sowed?

Eighteen months after it was spun off from Sears Holdings(SHLD), Orchard Supply Hardware(OSH) announced that it had filed for Chapter 11 bankruptcy protection and had reached an agreement for Lowe’s Companies (LOW) to acquire most of its assets.  We had been bullish on Orchard at the time of the spin. We were wrong. In its press release the company… Read More »

Sears Hometown And Outlets – The Brighter Side Of Sears?

It’s an old story – when will Edward S. Lampert, genius hedge fund manager, finally figure out how to create value out of the cobbled together pile of assets known as Sears Holdings (SHLD)? Recently, Lampert has gone from lackadaisical to peripatetic, spinning off Orchard Supply (OSH), Sears Hometown And Outlets (SHOS), and part of Sears Canada (SCC.TO). … Read More »

Sears Holdings Centrifuge Spins North To Canada

Shareholders of Sears Holdings(SHLD) have been once again reminded that entropy is inexorably increasing, at least in their brokerage accounts. Less than  a year ago they had only Sears, but since then, they have received in three separate transactions, Orchard Supply Hardware common (OSH) and preferred (OSHSP), warrants to buy Sears Hometown and Outlets (SHOS), and now, Sears… Read More »

Tricky Tax Treatment For Orchard Supply Preferred Shares

We’ve written before about the puzzle of Orchard Supply Hardware Preferred(OSHSP). This preferred issue was spun off from Sears Holdings(SHLD) together with Orchard Supply Common(OSH).  While we’re still not sure how to value them, thanks to Laurie Frederiksen, COO of bivio.com for pointing out some tricky tax treatment for their distribution. It seems that unlike most spinoffs which… Read More »

Is Orchard Supply Worth $10 per Sears Share? Morningstar Seems To Think So

A recent report on Sears Holdings(SHLD) by Morningstar analyst Paul Swinand lowers their fair value estimate for Sears by $10 per share due to the Orchard Supply(OSH) spinoff. Given the distribution ratio of 1 share of Orchard Supply for approximately every 22 of Sears, and Sears’ 80% ownership in Orchard Supply, this would seem to imply a per… Read More »