Hoffman Estates, IL Sears Holdings Corp.’s board approved the spin-off of Lands’ End for April 4, according to their filing with the U.S. Securities and Exchange Commission.
Dodgeville, Wisc.-based Lands’ End will be an independent company trading on the Nasdaq under “LE,” beginning April 7. Sears stockholders will get 0.3 Lands’ End shares for each Sears share they own.
Lease agreements will keep Lands’ End boutiques wherever they’re in Sears stores for the time being. Most of Lands’ End sales are through its catalog and online business.
Sears, once an iconic American retailer, is now struggling terribly. While Lands’ End has been profitable for the company, it hasn’t been enough, with Lands’ End fans feeling like the parent retailer hasn’t been good to the brand. It’s not clear how Lands’ End will do on its own or if the spin-off will help Sears much as it struggles to achieve some success in a tough retail environment. In the end, Sears may have to whittle itself further and stick to its Craftsman and Kenmore brands, which still enjoy a stellar reputation among consumers.