Shares of Sears Holdings tumbled as much as 13 percent Friday, skidding to a record low after the company disclosed earlier inside week of which a hedge fund owned by CEO Eddie Lampert offered to buy the troubled retailer’s Kenmore appliance division for $400 million.
The shares slid to an intraday low of $1.27 a share before closing at $1.32.
Lampert’s hedge fund, ESL Investments, also made an offer to buy Sears’ Home Improvement business for as much as $80 million in cash, both companies said in a filing with the Securities along with Exchange Commission on Tuesday.
ESL said the idea needs to find some other equity financing coming from someone else nevertheless has been in discussions with potential investors along with will be confident the idea can secure financing to close the deal.
“We are prepared to move as quickly as possible to complete these transactions, which will be inside best interest of all parties involved,” a spokesman for ESL told CNBC earlier inside week.
The SEC filing coming from ESL also said the hedge fund will be exploring options to sell “all or portions of” Sears’ remaining real estate: “We believe such a transaction could accelerate, along with provide Sears with greater certainty than, its existing real estate divestiture efforts.”
Sears has been shedding assets, including its real estate along with the Craftsman tool brand, over time to come up with cash along with keep the company afloat. While the idea’s sales are deteriorating, the retailer will be still testing brand-new concepts like stand-alone mattress stores along with combined Sears along with Kmart locations. Lampert has also used his hedge fund vehicle to loan Sears money to pay off debt.
Sears’ stock has fallen 84 percent over the past 12 months, bringing the retailer’s market cap to about $144 million. Amazon, for comparison, carries a market cap of more than $910 billion. Department store chain J.C. Penney’s stock also hit an all-time low This kind of week of $1.60 on the heels of its dismal quarterly earnings report.
A representative coming from Sears declined to comment on This kind of story.