Will Sears Sell Its Famous Brands Like Kenmore, Craftsman

(RTTNews) - While reporting a wider loss for the first quarter, Sears Holdings Corp. (SHLD) said it has decided to "aggressively evaluate" all potential alternatives for its top brands - Kenmore, Craftsman and DieHard or KCD, and the Sears Home Services or SHS businesses.

According to the struggling retailer, there is significant potential to further develop the KCD and Sears Home Services businesses. As the Internet of Things develops and more lives become connected, the department store chain expects SHS and KCD to benefit significantly from broader accessibility.

Sears noted that by evaluating potential partnerships or other transactions that could expand distribution of its brands and service offerings, it expects to position both businesses to achieve greater success.

"Our iconic KCD brands are beloved by the American consumer and we believe that we can realize significant growth by further expanding the presence of these brands outside of Sears and Kmart. Similarly, our SHS business, which is the nation's leading provider of in-home services, has greater potential than what we have delivered in the past," Sears said in a statement.

Sears has retained Citigroup Global Markets and LionTree Advisors to assist in its efforts.

Most brick and mortar retailers are losing the battle against stiff competition from online retailers in the digital age. Sears has failed to keep pace with the changes in shopping preferences and is faring worse than other retailers.

For the first quarter of 2016, Sears reported net loss attributable to shareholders of $471 million or $4.41 per share, wider than net loss of $303 million or $2.85 per share in the year-ago period.

Revenue for the quarter declined to $5.39 billion from $5.88 billion in the prior-year quarter, primarily driven by a 6.1 percent decline in comparable store sales.

Kmart and Sears Domestic comparable store sales declined 5.0 percent and 7.1 percent, respectively, in the quarter. Sears Domestic and Kmart apparel businesses continued to be negatively impacted by a heavily promotional competitive environment.

Sears also said its chief financial officer, Robert Schriesheim, will be departing from his position with the company to focus on his other business interests and pursue other career opportunities.