Lampert becomes majority owner of Sears Hometown, Outlet stores
Edward S. Lampert, CEO of the legendary but struggling Sears Holdings Corp., is now a majority shareholder in the company's offspring, Sears Hometown and Outlet Stores Inc., according to a federal filing on Thursday.
A Securities and Exchange Commission filing shows that Lampert's hedge fund ESL Investments Inc. and RBS Partners LP now own 50.7 percent of the Sears Hometown and Outlet Stores, which spun off from Sears in October 2012 and operates as a separate company.
The Hometown retailer sells home appliances, tools and lawn and garden equipment.
The Outlet Stores offer new, discontinued, used, reconditioned and overstocked items.
The Hometown and Outlet Stores has independent dealers and franchisees with 1,248 stores nationwide as well as in Puerto Rico and Bermuda, as of 2015, the company website said. Sears Hometown and Outlet Stores, also based in Hoffman Estates, reported in December that it had an operating loss of $7.5 million during its third quarter. Its President and CEO Will Powell had replaced W. Bruce Johnson last July.
Powell has been senior vice president and chief operating officer of the company since it separated from Sears Holdings, the company website said.
A spokesman for the Hometown and Outlet Stores was not immediately available for comment.
Separately, Sears and Kmart stores announced earlier this week that after another disappointing holiday season, the company was on target to close about 50 stores that were announced last month.
"They will close over the next couple months. None of the stores in the Chicago area are impacted," said Sears spokesman Howard Reifs of the Sears and Kmart stores.