Sears Hometown and Outlet Stores Launch IPO
HOFFMAN ESTATES, Ill.-Sears Hometown and Outlet Stores Inc., the entity created by Sears Holdings' spinoff of the Sears Hometown and Sears Outlet segments, has filed for an initial public offering with the U.S. Securities and Exchange Commission.
Once the offering is closed at a date not yet determined, the new company will be independent of Sears Holdings and will be a publicly traded company, the filing said. The price for the stock was not specified in the filing. As announced by Sears Holdings in April, the company filed for a rights offering with the SEC entitling holders of Sears Holdings common stock to purchase stock in Sears Hometown and Outlet Stores. The IPO filing said it anticipated that ESL Investments, the hedge fund managed by Edward L. Lampert that owns 62 percent of Sears Holdings' common stock, will also own 62 percent of the common stock of Sears Hometown and Outlet Stores.
As of April 28, the new entity consisted of 944 Sears Hometown stores, 122 Sears Outlet locations, 96 Sears Hardware stores and 76 Sears Home Appliance showrooms. According to the IPO filing, the company focuses on selling home appliances, hardware, tools and lawn and garden equipment. Sales of the new company in the first quarter of 2012 totaled $621.1 million, up 6.2 percent from the first quarter of last year; while net income was $20.6 million, an increase of 177 percent year over year.