Sears shares are jumping after CEO Eddie Lampert offered to buy one of its units through his hedge fund, ESL Investments.
In a letter to the company’s board of directors, Lampert said he would buy the unit through his hedge fund. The letter notes that Kenmore, SHIP and PartsDirect have substantial value and that divesting one or more of them would enable the company to improve its debt profile and liquidity position, according to a company statement.
Shares rose more than 5 percent to $3.39 a share after the offer became known. The move would downsize Sears significantly, but it would also help stabilize the financially struggling company.
» TRENDING BUSINESS NEWS: Sears to close another store in Ohio
Lampert gave a rare interview to Vanity Fair last month — the first in-depth sit down with the leader in about 15 years. Lampert, who was interviewed in his home in Florida, talked about the company's future and his past business decisions.
“We’re fighting to survive — that’s pretty clear,” Lampert told Vanity Fair. “I believe in what’s possible, and we’re doing things that are necessary to keep the company going …. It’s definitely not just humbled me, but it’s expanded my awareness of real issues that exist in our society…. I feel like I can make a contribution by being involved, O.K.?”
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