Sears Is Potentially Selling Off Its DieHard Brand
The DieHard brand is one of the most iconic brands that Sears operates. But there is a potential for Sears to sell off its DieHard brand in the future. The event comes as Sears Holdings continues to experience significant issues and has become at an elevated risk of shutting down altogether.
Sears Holdings has been in trouble since declaring bankruptcy in 2018. The company, owned by ESL Investments, has been trying to raise money to save the entity. Chairman Eddie Lampert has grown billions over the years to try and revive the Sears brand and its Kmart subsidiary, but much of his work has been to no avail. Selling the DieHard brand is the latest move to take place.
About the Sale
Sears is planning on selling the DieHard brand to another entity, although it is unclear as to who would buy it. Details on the value of the brand are unclear, but it could be worth hundreds of millions of dollars.
DieHard is a prominent car battery brand. It was introduced in 1967 and covered batteries for automobiles of all sorts.
DieHard’s offerings have expanded over the years to include batteries for motorcycles, boats, snowmobiles, and golf carts.
The DieHard brand is also used for traditional batteries sold by Sears.
The familiarity of the DieHard brand would make it a high-value brand to sell. The move would be similar to how Sears has sold its Craftsman brand of tools and its Kenmore brand of appliances.
The Kenmore brand was worth about $400 million when it was sold off. The value comes from how the brand had been prominent for years, but that does not mean that the DieHard value would be the same.
Amid Ongoing Issues
The possible move of selling the DieHard brand comes as Sears Holdings continues to fall apart. About a hundred Sears and Kmart stores are expected to close in 2020. There will be around 180 stores left after those locations close down.
Sears Holdings had about a thousand Sears and Kmart locations around the country in 2018 before declaring bankruptcy. A massive number of those stores have shut down, including stores in the Chicago city limits where Sears is based and its anchor store at the Mall of America in suburban Minneapolis. The company also shut down its Canadian operations.
Sears and Kmart
Lampert has borrowed money in many forms to help restore the operations for Sears and Kmart. But there have been issues surrounding Sears’ ability to raise money and increase revenue. The small-format Sears Hometown stores have also been struggling, as the sales numbers for those stores are very low.
The decline of Sears and Kmart has been one of the most dramatic issues in recent time. Sears had more than 4,000 stores around the country and had a presence in many places around the world. The company also had a share in many businesses, including the Coldwell Banker real estate company, the Allstate insurance company, and the Discover credit card firm. But today, Sears is a fraction of its former self.