Sears Holdings Corporation (NASDAQ: SHLD) announced today that it intends to pursue alternatives for the separation of the company's Orchard Supply Hardware business, which could include a sale of the business or initial public offering. Orchard Supply Hardware is a leading chain of 82 hardware and garden retail stores located throughout California.
Alan J. Lacy, vice chairman and chief executive officer of Sears Holdings Corporation, said, "Sears Holdings is focusing its management attention and capital on the opportunities in our core business presented by the merger of Sears and Kmart. While we continue to believe in Orchard's business model and growth strategy, we are pursuing alternatives to provide Orchard Supply Hardware with the capital to grow its store base, while at the same time providing appropriate value to Sears Holdings."
Citigroup Global Markets Inc. and Lehman Brothers Inc. are acting as financial advisors to Sears Holdings Corporation.
About Sears Holdings Corporation
Sears Holdings Corporation is the nation's third largest broadline retailer, with approximately $55 billion in annual revenues, and with approximately 3,800 full-line and specialty retail stores in the United States and Canada. Sears Holdings is the leading home appliance retailer as well as a leader in tools, lawn and garden, home electronics and automotive repair and maintenance. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well as the Apostrophe and Covington brands. It also has Martha Stewart Everyday products, which are offered exclusively in the U.S. by Kmart and in Canada by Sears Canada. For more information, visit Sears Holdings' website at http://www.searshc.com/ .
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, benefits to Sears Holdings arising from the separation of the company's Orchard Supply Hardware business, statements about future financial and operating results and Sears Holdings' plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the ability to identify and implement one or more transactions resulting in the separation of the Orchard Supply Hardware business; the ability to obtain relevant governmental and other approvals for any such transaction; competitive conditions in retail and related services and hardware industries; difficulties in separating the businesses; changes in consumer confidence, tastes, preferences and spending; regulations and other factors potentially affecting the ability to find qualified buyers for the business; social and political conditions such as war, political unrest and terrorism or natural disasters; the impact of seasonal buying patterns, which are difficult to forecast with certainty; and general economic conditions and normal business uncertainty. These forward- looking statements speak only as of the time first made, and no undertaking has been made to update or revise them as more information becomes available.
SOURCE: Sears Holdings Corporation
CONTACT: Edgar P. McDougal of Sears Holdings Corporation,
Web site: http://www.searshc.com/