Sears may separate Lands' End, Auto Center businesses

Reuters

Oct 29 (Reuters) - Sears Holdings Corp isconsidering separating its Lands' End clothing and Sears AutoCenter businesses into independently managed operations as partof its turnaround plan, after another quarter of decliningsame-store sales.

The company, headed by hedge fund manager Eddie Lampert,said on Tuesday same-store sales for the 12-weeks ended Oct. 26fell 3.7 percent.

Sears said it expects to post a net loss of between $532million and $582 million for the third quarter ending Nov. 2.

Sears' sales have declined since 2005 as the company battlesintense competition from Target Corp, Wal-Mart StoresInc and Amazon Inc.

Sears reported a 1.5 percent fall in same-store sales forits second quarter.

The company launched a turnaround plan last year, and hasbeen closing stores, selling real estate and shedding assets.

The company said on Tuesday Sears Canada Inc, inwhich it holds a 51 percent stake, would sell five store leasesto Cadillac Fairview Corp Ltd for C$400 million.

Sears said the separation of the Lands' End and Auto Centerbusinesses would help it focus on its core businesses. Thecompany also said it was looking to close more underperformingSears and Kmart stores.

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