Sears on Thursday announced that it will sell the Craftsman tools brand to Stanley Black & Decker in a deal valued at $900 million.
It is the latest move by the failing department store to drum up cash in an era where consumers are spending their money online versus in physical stores.
“We are committed to improving short-term operating performance in order to achieve our long-term transformation,” said Edward S. Lampert, chief executive of Sears Holdings.
Sears also said it would close 150 stores by the end of March, including 41 Sears outposts and 109 Kmart locations.
A forecast from the National Retail Federation predicted a successful holiday shopping season, but Sears’ holiday sales disappointed, illustrating the depth of the chain’s issues.
According to Breaking911, the Craftsman sale will give Sears an infusion of cash as it aims to repair its troubles.
James M. Loree, Stanley Black & Decker’s chief executive, said in a statement:
“This agreement represents a significant opportunity to grow the market by increasing the availability of Craftsman products to consumers in previously underpenetrated channels. We intend to invest in the brand and rapidly increase sales through these new channels, including retail, industrial, mobile and online.”
Almost simultaneously, Macy’s announced they will also be shuttering 68 stores by mid-year and cutting 10,100 jobs.