Sears Holdings Corp. is evaluating separating the Sears Auto Centers (SAC) business. Management contends that this would allow SAC to pursue its own strategic opportunities, optimize its capital structure, attract talent and allocate capital in a more focused manner.
Sears, which is led by hedge fund billionaire Eddie Lampert, believes that SAC has a unique national footprint that can be leveraged to create significant value. “We have begun the repositioning of the business around non-tire related services as tire margins have been compressed industry-wide over the past several years, leveraging the store footprint, the number of service bays and our auto technicians,” Sears wrote in a prepared statement.
Lampert runs ESL Investments, which has owned a sizable stake of AutoZone and AutoNation.
We encourage you to add your comments below concerning this article.