Sears Holdings Files to Spin-off Orchard Supply Hardware Stores
This is interesting as shareholders have been waiting for SHLD to unload the numerous assets they have trapped in the losing retail concepts of Sears and Kmart. Its also compelling that they've decided to spin the assets out instead of outright selling the company and possibly using the cash to repurchase more stock. A lot of shareholders have suggested that SHLD should spin off the real estate assets in order to unlock value. Possibly this is the start of things to come.
According to the PR, Orchard Supply Hardware has 89 full service hardware stores in California which also explains why I have no knowledge of the stores as well. The news is limited at this point so the flow over the next few months will be interesting. Not to mention that a lot of these corporate spin-offs can be very profitable as they most likely have been ignored with the focus on the big losing concepts.
Disclosure: Long SHLD in client and personal accounts. Please review the disclaimer page.