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Sears Spinning Off Some Stores Into Separate Company

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    NEWSLETTERS

    The Kardashian Kollection debuted at Sears in Woodfield Mall on Friday and hundreds of fans lined up for an opportunity to meet Kim, Khloe and their mom Kris. (Published Friday, Apr 20, 2012)

    Sears is preparing to spin off its Hometown and Outlet stores as well as some hardware stores into a separate publicly traded company.

    The news sent the company's stock up $2.58, or 5 percent, to $54 in premarket trading Monday.

    Kardashian Fans Camp Out at Woodfield Mall

    [CHI] Kardashian Fans Camp Out at Woodfield Mall
    The Kardashian Kollection debuted at Sears in Woodfield Mall on Friday and hundreds of fans lined up for an opportunity to meet Kim, Khloe and their mom Kris. (Published Friday, Apr 20, 2012)

    Sears, based in Hoffman Estates, had signaled it would split the companies back in February. There are a total of 1,238 Hometown, Outlet and hardware stores as of April 28, according to Sears, which is trying to turn around its business and spruce up its image. It has already closed five Hometown stores, eight hardware stores and one Outlet store.

    Sears, which also owns Kmart, has looked at spinoffs and real estate sales to restore profitability and boost shareholder confidence. Aside from the separation of the Hometown, Outlet and some hardware stores, the company announced in May that it would spin off a stake in its Canada division.

    Quinn on Sears Leaving Illinois

    [CHI] Quinn on Sears Leaving Illinois
    Gov. Pat Quinn says he doesn't think Sears will ultimately leave Illinois, pointing out the state's place in the Midwest economy and its recent track for job growth. (Published Tuesday, Jan 3, 2012)

    Sears did not disclose Monday in the filing with the Securities and Exchange Commission how much money it expects to raise with the spin-off of the Hometown, Outlet and hardware stores. It previously said that it expected the deal to raise between $400 million and $500 million.

    Sears Chairman Edward Lampert's ESL Investments Inc. will own a majority stake in the business being spun off.

    For fiscal 2011, the combined Sears Hometown, hardware and Outlet businesses had net income of $33.1 million on sales of about $2.34 billion. That compares with fiscal 2010 net income of $49.8 million on sales of approximately $2.35 billion.

    Sears Holdings Corp., based in Hoffman Estates, Ill., is set to report its second-quarter earnings Thursday.

    Copyright Associated Press