One of the more profitable arms of Sears Holdings is soon to be its own entity, according to the Chicago Tribune. Beginning April 6, Lands’ End will become its own brand, completely separate from its creator, Sears.
From the article:
On March 24, stakeholders in Sears will receive about .3 shares of Lands’ End common stock, according to the filing. Lands’ End intends to be listed on the NASDAQ Stock Market under the symbol “LE” and will begin trading on April 7.
Wisconsin-based Lands’ End will pay Sears a cash dividend of $500 million before the spinoff, financed by a new term loan. Lands’ End may also borrow up to $175 million for working capital, according to the filing.
Hoffman Estates-based Sears has seen its sales decline since billionaire hedge fund manager Edward Lampert combined Sears and Kmart in an $11 billion deal in 2005. In recent years, Sears has spun off Orchard Supply Hardware and Sears Hometown and Outlet stores, among other assets.
Started in Chicago in 1963 as a sailboat equipment catalog, Lands’ End evolved into an upscale casual clothing retailer. Sears purchased the company for $1.9 billion in 2002.