Waiting in Lampert's Orchard

While investors wait for Sears (SHLD Quote) to revive its retail operations, a recent deal to spin out part of its Orchard Supply hardware chain shows that the cash-raising plank of Ed Lampert's turnaround platform is also given to tremors.

Sears' stock has lost 25% since the beginning of August amid a series of disappointing sales and earnings reports. The stretch has been the first major test of loyalty to Lampert, the hedge fund guru who brought Kmart out of bankruptcy and bought Sears a year ago.

Last week, reflecting Lampert's efforts to monetize noncore assets, Sears announced that it closed on a $58.7 million investment from Ares Management LLC, a private equity firm, in the retailer's Orchard Supply Hardware subsidiary. Ares bought 19.9% of the garden supply company and a three-year option to acquire another 30.2% stake for $126.8 million. ...