Sears, Roebuck & Co. is seeking a buyer for its Lands’ End catalog company at an asking price below the $1.9 billion it paid in 2002, according to wire service reports.
Sears, which in November agreed to be acquired by discount retailer Kmart Holding Corp. for nearly $11 billion, also declined to comment. As the deal enters the final stages — shareholders of both companies are set to vote on it on March 24 — analysts speculate the two sides may be looking to shed assets.
When Sears was acquired by Kmart last November for $11 billion, direct marketing industry observers saw that possible direct marketing good could come out of the deal, although there were many question marks (Direct Newsline, Nov. 17, 2004). “It’s way too early to speculate on what they will do with the direct marketing,” said Harry Chevan, principal, in direct marketing investment bank Gruppo, Levey.
He expressed some skepticism on how successful any new venture might be, judging from recent efforts by both companies.
“Kmart’s Bluelight.com was not terribly successful,” he said. At the same time, he said Sears’ efforts with cataloger Lands’ End “are not overwhelming.”
Lands’ End said last month it would cut more than 375 jobs and streamline its business operations in a restructuring that follows a drop-off in phone orders as customers opt to purchase goods in other ways, including online. Analysts have said the clothing catalog company is an awkward fit with Sears.
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