Sears Holding Corp. is taking a dual approach to margin repair, shuttering 104 more stores and also selling its Craftsman tools unit, a top brand for the company.
As reported via chainstoreage.com, the retailer is selling Craftsman to Stanley Black & Decker for about $900 million, which takes into account royalty payments. Sears will continue to sell the tools under that brand. Craftsman had been marketed for sale beginning several months ago, said the chainstoreage.
In reference to the store closings, of that 104-store tally, 78 will be Kmart and the remainder will be Sears stores over the next several months. Those closings come on top of an announcement late last month that the company would close 30 Kmart and 16 Sears locations. After all of those locations go dark, the total portfolio would be a little less than 1,500 stores, off 60 percent from six years go.
Under the terms of the Craftsman agreement, the tools will be sourced from existing suppliers, with sales through existing channels. The agreement exists as a perpetual license from Stanley Black&Decker. The agreement is royalty free through the first 15 years. Roughly 10 percent of the Craftsman branded items are sold outside of Sears.