Sears Holdings is trying several things start to turn around its business in regards to its store base. The sale of 11 stores to General Growth Properties. The closing of 62 stores at the end of last year.
Well, the hardware-based Hometown stores, over 40 of which it closed, are being spun off into their own public entity. There are about 1,200 of them across the country, and they sell Sears hardware products (which many believe to be the most valuable part of the company's business).
Though Hometown only makes up a fraction of Sears' total revenue, $2.6 billion out of $41 billion, according to Marketwatch, its earnings account for 25% of the total company's, which is a very striking number.
The spinoff was supposed to make Sears $400 million to $500 million (doesn't sound a lot for a company with $41 billion in revenues), but the New York Post reports that Sears now only expects to earn $346.5 million.
Is the spin off of Hometown something to get excited about that will help Sears out, or will it take something bigger, like the sale of Lands' End or Crafstman?
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