Sears Outlet

Sears Outlet
FormerlySears Surplus (1968–1994)
Company typeSubsidiary
IndustryRetail
Founded1968 (1968) in Kansas City, Missouri
Defunct2020 (2020)
FateAcquisition by Franchise Group
SuccessorAmerican Freight
Parent
Footnotes / references
[1]

Sears Outlet was an American outlet store chain for overstock merchandise belonging to the Sears department store chain. It sold new, reconditioned, overstock, scratch & dented, and discontinued products[2] online and through brick and mortar stores in the United States and Puerto Rico. Each store, on average, is larger than 18,000 square feet in size.[3] Sears Outlet’s product range included refrigerators, washers & dryers, ovens, air conditioners, home appliances, lawn and garden equipment, apparel, sporting goods, tools, household goods, and consumer electronics.[4][5]

Sears Outlet was acquired from Sears Hometown and Outlet Stores by Franchise Group in 2019, and converted to American Freight in 2020.[6]

History

In 1968, Sears opened a Sears Surplus store in Kansas City. This was the first of its kind operated by the Sears brand.

In 1987, the Surplus stores were renamed to Sears Outlet.

In 2008, Apparel was introduced to stores and served as a liquidation outlet for Lands' End.

In 2012, parent Sears Holdings spun off Sears Outlet along with Sears (Authorized) Hometown Stores, Sears Home Appliance and Showroom Stores, and Sears Appliance and Hardware Stores to form Sears Hometown and Outlet Stores, Inc (SHOS). The new company became its own independent, publicly traded company listed on NASDAQ.[7][8] At the time of the separation, there were 122 Sears Outlet Stores in operation.[9][10]

The company partnered with the National Volunteer Fire Council in November 2013 to raise money for local fire departments.[11] The objective of the campaign was to provide firehouses with funds to improve resources for training, equipment, and financial support.[11]

When former parent Sears Holdings filed for Chapter 11 bankruptcy protection on October 15, 2018, Sears Hometown and Outlet Stores was not affected due to having been spun off from Sears since 2012.[12]

In April 2019, it was announced that TransformCo would acquire the company.[13][14] However it was reported a few days later that Sears Hometown and Outlet Stores acquisition offer was rejected, and as a result Sears Hometown and Outlet Stores could have faced liquidation, similarly to Sears Holdings but which was acquired by ESL Investments a few months earlier.[15][16][17]

In June 2019, it was announced that TransformCo would acquire the remaining shares in the company.[18] Under the terms of the new merger agreement, Sears Hometown was given a specified period of time to market and sell its Sears Outlet and Buddy's Home Furnishing Stores businesses (together, the "Outlet Segment") to a third party for not less than $97.5 million. If the Outlet Segment is sold in accordance with the terms, it would not be acquired by Transform in the acquisition of Sears Hometown.[19] At the time of the announcement, Sears Hometown and Outlet Stores had 491 Hometown stores and 126 Outlet stores in 49 states, Puerto Rico and Bermuda.[20]

In August 2019, Franchise Group, Inc., the parent of Liberty Tax, announced plans to acquire the Sears Outlet division from Sears Hometown and Outlet Stores,[21] and on October 23, 2019, Sears Hometown and Outlet Stores completed its sale of Sears Outlet division to Franchise Group.[22] TransformCo completed the acquisition of the remainder of Sears Hometown at the end of the same business day.[23]

Awards

  • Customer Engagement award from the online publication Retail TouchPoints in 2014 for integration of in-store and online shopping experiences at Sears Outlet stores.[24]

References

  1. ^ Schultz, Clark (December 30, 2019). "Franchise Group lands American Freight Group". Seeking Alpha. Retrieved 2020-08-24.
  2. ^ "Worth noting in business: Sears Outlet store opens on White Lane". 2014-02-10. Retrieved 2014-11-19.
  3. ^ "New Sears Outlet Store Opens in Queens Village". 2015-05-26. Retrieved 2015-06-03.
  4. ^ Joseph S. Pete (2014-04-15). "New owners buy Sears Outlet Store in Portage". Retrieved 2014-11-19.
  5. ^ Damon Scott (2014-01-30). "Sears Outlet store coming to ABQ's Westside". Retrieved 2014-11-19.
  6. ^ "SHOS Profile". 2014-11-19. Retrieved 2014-11-19.
  7. ^ "Sears To Spin Off Hometown, Outlet Stores Into Separate Company". Huffington Post. 2012-08-14. Archived from the original on November 16, 2015. Retrieved 2014-11-19.
  8. ^ "Sears files to spin off Hometown, Outlet stores". Crain's Chicago Business. 2012-08-13. Retrieved 2014-08-17.
  9. ^ Booton, Jennifer (2012-08-13). "Sears' Hometown Stores to File for IPO". Fox Business. Archived from the original on September 24, 2015. Retrieved 2014-11-19.
  10. ^ Shropshire, Corilyn (2012-09-08). "Sears to spin off Hometown, Outlet stores Tuesday". Chicago Tribune. Retrieved 2014-11-19.
  11. ^ a b "Sears Hometown and Outlet Stores, Inc. Launches "Salute to Local Heroes" Charity Campaign to Support First Responders". National Volunteer Fire Council. 2013-11-22. Archived from the original on 2013-12-09. Retrieved 2014-08-17.
  12. ^ Eastman, Tom (October 23, 2018). "Bankruptcy filing won't impact Sears Hometown stores". The Conway Daily Sun. Retrieved 2018-11-18.
  13. ^ Tyko, Kelly (April 8, 2019). "Sears' Eddie Lampert looks to regain full ownership of Sears Hometown and Outlet Stores". USA Today. Retrieved 2019-04-11.
  14. ^ Zumbach, Lauren (April 8, 2019). "Sears continues its push into appliances by offering to buy full control of a chain spun off years ago". Chicago Tribune. Retrieved 2019-04-11.
  15. ^ McDonald, Samantha (2019-04-10). "Why Sears' Hometown & Outlet Stores Rejected Ex-CEO's Offer to Buy Remaining Shares in Company". Footwear News. Retrieved 2019-04-16.
  16. ^ "Sears Hometown and Outlet Stores considering liquidating Hometown stores". USA Today. Retrieved 2019-04-16.
  17. ^ Zumbach, Lauren (2019-04-16). "Sears seeks to reclaim Hometown brand". Lewiston Tribune. Chicago Tribune. Retrieved 2020-09-22.
  18. ^ "Sears Parent Co. Buying Sears Hometown And Outlet Stores". WBBM-TV. 2019-06-03. Retrieved 2019-06-03.
  19. ^ Prang, Allison (June 3, 2019). "Eddie Lampert's Company to Buy the Rest of Sears Hometown, Outlet Stores". The Wall Street Journal. Retrieved 2020-01-01.
  20. ^ Finaldi, Laura (July 26, 2019). "Sears is coming back to Manatee County ... kind of". Ocala Star-Banner.
  21. ^ Pierceall, Kimberly (August 27, 2019). "Liberty Tax to buy Sears Outlet stores for $132.9 million". The Virginian-Pilot. Retrieved 2019-09-21.
  22. ^ "Franchise Group, Inc. Closes on the Acquisition of the Sears Outlet Business from Sears Hometown and Outlet Stores, Inc". GlobeNewswire (Press release). October 23, 2019.
  23. ^ Aycock, Jason (October 23, 2019). "Sears Hometown and Outlet +2.7% after merger transaction". Seeking Alpha.
  24. ^ "Sears Hometown and Outlet Stores Receives Customer Engagement Award". Home Furnishing News. 2014-01-14. Retrieved 2014-08-17.
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