NEW YORK (TheStreet) -- Sears Holdings
(SHLD) said Tuesday it is considering spinning off its Lands' End and Auto Center business segments, along with selling some of its locations in Canada. Anthony Karabus, president of Hilco Retail Consulting, told TheDeal's Richard Collings the company appears to be stuck in a vicious circle of asset reduction.
It does not appear CEO Eddie Lampert seems focused on a turnaround but simply selling off assets in an effort to raise cash, Karabus added. He said the Lands' End and Auto Center operations need to be able to exist outside of Sears locations in order to be successful.
If Lands' End can have its own retail store locations, it will increase its valuation, he suggested.
As to the Sears locations in Canada, Karabus said selling its top stores and locations greatly reduces revenue, forcing Sears to rely on less-profitable locations. Eventually, Sears will be forced to sell the next round of its best stores, perpetuating the vicious circle, Karabus said.
-- Written by Bret Kenwell in Petoskey, Mich.
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