Sears is spiking after CEO Lampert offers to buy Kenmore brand and other assets

  • Sears shares are jumping Monday after CEO Eddie Lampert proposed to buy one of its units through his hedge fund, ESL Investments.
  • Sears is selling off its real estate, brands, and closing stores in an effort to stave off bankruptcy.
  • Watch Sears stock in real time here.

Shares of the struggling retailer jumped Monday – rising more than 5% to $US3.39 a share – after the company’s own CEO, Eddie Lampert, offered to buy its Kenmore unit, along with real estate and other assets. In a letter to the company’s board, Lampert said would buy the unit through his hedge fund, ESL Investments.

Sears has been in survival mode for the past several years, selling off assets as it looks to stave off bankruptcy. Most recently, Sears said it will auction off 16 locations on an online bidding system. Sears is also closing stores and laying off workers.

But ESL’s proposed acquisition of one of Sear’s home improvement subsidiaries, plus other assets, for a total of $US500 million, is lifting the stock, which is down 72% in the past year. For context, the proposed acquisition of $US500 million beats Sears’ market cap of $US323 million.

Sears is down 18% year-to-date.

Screen Shot 2018 04 23 at 9.49.16 AMMarkets Insider

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.