Bringing the band back together: Eddie Lampert to buy Sears Hometown and Outlet Stores

Sears Holding Corp. spun off Sears Hometown into a separate entity in 2012

Sears CEO Edward Lampert (Credit: Getty Images and iStock)
Sears CEO Edward Lampert (Credit: Getty Images and iStock)

Seven years after Sears spun off its outlet stores into a separate company, controversial former CEO Eddie Lampert wants to bring them back under his wing.

The parent company of the retail giant, in which Lampert has a majority share, announced this week that it would pay $2.25 per share to acquire Sears Hometown, according to the Associated Press.

The acquisition would allow Sears Hometown to sell its Sears Outlet and Buddy’s Home Furnishing Stores to a third-party buyer for at least $97.5 million.

The move is the latest chapter in Lampert’s ongoing efforts to claw the vaunted brand back from bankruptcy, following his $5.2 billion takeover of the company earlier this year.

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The parties are aiming to close the deal sometime during the third quarter.

Sears sued Lampert in April, alleging that the chairman profited off the company’s near-demise during his stint as CEO.

And last month, the New York-based HPS Investments led an $800 million refinancing package on a nationwide portfolio of Sears and Kmart stores. [AP] — Alex Nitkin