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    Sears shares jump on rumors

    PORTLAND, Ore. (AP) — Sears spiked 9 percent in Tuesday trading as investors speculated that the company may go private.

    The company's stock price has fallen sharply over the past year but rose $2.45, more than 7 percent, to $36.01 in afternoon trading.

    Sears Holdings, which operates the Sears department stores and Kmart discount chain, has struggled financially for some time.

    It announced in late December that it was closing between 100 and 120 of its stores to raise cash after a terrible holiday shopping season. And in the latest of several public blows to its image, CIT Group Inc. last week said it would stop financing loans to suppliers waiting to be paid by Sears.

    Since then, rumors have been building that the company's hands-on chairman, Eddie Lampert, may take the company private in a final attempt to turn the business around. The strategy could make it easier to draw investors, lure the expertise of private equity firms and provide the freedom to retool away from public scrutiny.

    Lampert's decision last week to buy up roughly $159 million in Sears stock over several days helped further that speculation.

    According to SEC filings Wednesday, Lampert's ESL Investments hedge-fund firm sold about 4.46 million Sears shares to Lampert in private stock sales. Lampert also bought additional Sears stock on the open market for roughly $12 million. He holds about 59 percent of the company's shares either directly or through his related entities.

    The company's shares often vacillate based on rumors of Lampert's intentions.

    Shares rose $2.94 to $36.50.

    Sears Holdings Corp., which is based in Hoffman Estates, Ill., has seen its stock trade between $28.89 and $94.79 in the past 52 weeks.

     

    85 comments

    • Jack  •  4 mths ago
      Sears and Kmart need to crank up a "Made In The USA" theme by finding as many USA-made products as they can. They could still handle goods from other countries, but the products made in the United States should become their mainstay.

      With millions of U.S. citizens reconsidering where they are shopping, and gradually finding more and better products made at home, I believe they would draw in many new customers.
      • Jake 4 mths ago
        I've been waiting for SOME company to do this. Maybe I'll open my own store.
      • Vermont is not in Canada! 4 mths ago
        It's not going to happen, Kenmore which has been made my Whirlpool for more years than I can rember and is 95% American made . Has been replaced by LG, south korean crap. Sears loves to push LG and Samsung. They don't service what they sell and they don't sell American. But they will take you for a service contract quick enough.
      • billbradski 4 mths ago
        Good luck! Sears just ended it's contract with American made Whirlpool for LG and Samsung. LOL.
    • Les  •  Dallas, Texas  •  4 mths ago
      How unfortunate, another American main-stay going by the wayside. Sears was the hub of America for 100 years. Hats off to Richard Sears and Alvah Roebuck for creating a chain that forged the way for so many others!
      • RedLeg6 4 mths ago
        My childhood challenge. Comparing bicycle makes/models/prices between the Sears Roebuck catalog and the Monky Wards catalog on the livingroom floor in front of the stove in winter time.
    • FTW  •  Chicago, Illinois  •  4 mths ago
      I'm going to start a rumor, maybe my salary will jump 9%!
      • Bo 4 mths ago
        You made my day. :)
      • WorkmakesyouFree 4 mths ago
        Unemployment checks don't jump that much.
      • RL 4 mths ago
        Don't let B.O. get wind of it! Your salary WILL DROP by not less than 90%!
    • DD Sims  •  4 mths ago
      If they brought back the Sears catalog it would help. Out of sight out of mind is where they stand right now with many potential consumers.

      Ask yourself.......when was the last time you bought something from Sears?

      What would cause me to go all the way to Sears? I like the store and it is a Mall staple but they have got to give the customer something to get them shopping there again. Start with the catalog.
      • J 4 mths ago
        Stores also need updates it looks like a store from the 80's-90's in there.
    • Hugh  •  Columbus, Ohio  •  4 mths ago
      I like Sears hardware. I have always thought Kmart did a better job than Walmart. I went to Ka-mart/Sears on Christmas eve at noon. # cash reegisters running. At least 100 in line waiting to buy. I left. Someone did not plan properly.
      • lathrupman 4 mths ago
        You're not alone there. Our local Super-K has the slowest checkouts in the area, bar none. There is no true express lane for the person who has just a few items nor are there self-check-out lanes. They truly need to get into the 21st century.
      • Crosseyed and Painless 4 mths ago
        sears/kmart never quite figured out people wanted to spend their time shopping, not waiting in line to pay for stuff. i mean, who wants to wait in line for 20-30 minutes to buy something??
      • J 4 mths ago
        Walmart drove more jobs overseas by demanding lower pricing from companies. Kmart was it for me but finding fewer and fewer of the Big K so guess its Target for me.
    • Me  •  4 mths ago
      Their stock mya jump even higher if they stopp associating with the Kar-trashians!
    • Zip S  •  Baltimore, Maryland  •  4 mths ago
      Before there was the Internet, there was Sears. They had a catalog or more affectionately remembered as the "Wish Book" that anyone in America could order anything from and have it shipped to them - sound familiar? They sold tools, clothes vehicles and houses! If greed is taken out of the equation, there's no reason this treasured store couldn't be resurrected.
    • namvet  •  4 mths ago
      I haven't bought from Sears since they imposed a re-stocking fee on returns - including gifts. If Sears truly wants to recover, they will look back at the customer-first tradition they had for about 100 years.
    • danny  •  4 mths ago
      Get rid of managers and hire cashiers..I went into the store today and couldn't get anybody to take my money or answer any questions
    • glenn  •  Houston, Texas  •  4 mths ago
      Sears Roebuck grew into a giant retailer by providing everything a family needed except groceries. Think they toyed with the grocery idea for a while and blew it off. But folks who worked for Sears between 1930...approximately the end of the Great Depression...until the 1990's did very well. Sears had a profit sharing plan for the employees that was second to none in the US. My mother was a Sears employee for many years. She started as a comparison shopper and worked her way up. Her last job at Sears was executive secretary to a Group Level executive. She had three secretaries working for her. She made more money than my father made and he was a printer. I know many folks who worked for Sears who retired well. It was a great company.
    • Silent Guy  •  4 mths ago
      If Sears returned to its roots, was competitive, not overpriced and provide good quality service, it would not need be in the state it is.
    • LadyLiberty  •  Chicago, Illinois  •  4 mths ago
      We, the public, have spoken. Sears, ARE YOU LISTENING? Quality Product (Made in the U.S.A.) Reasonable Prices and Good Customer Service! It may take a few years to gain back the confidence of the consumer, but trust me, it won't take long for people to flock to your stores, catalogs and website to shop. Once they do, profits will soar and Sears will be the great American icon they once were.
    • ronald  •  4 mths ago
      walmart was built on "made in america".. I remember Sam walton preaching this and the whole sams choice line of products had "made in america" because its better on it...America was in the revitalize america and everybody was buying harley davidsons and chevrolets...made them what they are now,, that big surge nationwide instead of the dollar store of the south...

      So if Sears was to totally change their inventory and be "made in america" everything,even if its higher priced they would be great....id personally shop there even if it was a little higher as im sick of all the chinese crap of today....

      walmart is owned by the spoiled brats raised by a absent father who was too busy building the empire , the walton kids turned it all over to executives who only care about their bonus , and the walton kids dont give a crap as they couldnt burn all the money they have now if they tried..
    • deedee lishous  •  4 mths ago
      please open the made in the U.S.A. section in your stores it will make my shopping a lot easier
    • Jorge  •  East Haven, Connecticut  •  4 mths ago
      I feel like if they make a renewed effort to go after the MADE IN USA business model and pump a little sex appeal into the store aesthetics, they can improve their market position. There is currently a movement to do away with cheap foreign products and an anti- China sentiment. Try to capitalize on that and maybe try to draw in a partner( a-la- dunkin donuts) to put small satellite stores in the main store periphery as a convenience and a draw for potential customers. The tool/auto and home dpts are solid enough that w a little tweaking, perhaps there is some hope.
    • Jim M  •  Killeen, Texas  •  4 mths ago
      During the 50's&60's Sears were showcase stores and that was where people went to shop. In the 70's people's shopping habits changed but Sears would not see it as a threat to their retail dominance until it was to late. Today the stores are old and dirty. the merchandise is overpriced and not what the customers want, employees are lazy and have no product knowledge, customer service on a scale of 1-10 is about 2. If this was a sick animal you would put it down to end its suffering. In the end the only person that is going to make any money off this deal is Eddie Lampert, somehow these people always land on their feet.
    • David H  •  4 mths ago
      At one time Sears sold everything. Even houses, cars, boats, prostitutes.
      Oh wait, maybe not that last one.
      Or maybe so!
    • fred  •  4 mths ago
      There is one good idea among what I have read here. Re-brand yourself as a made in the USA clearinghouse. All these other people saying they are priced too high, don't have enough cashiers, this is all post-wahlmart stuff you are blathering on about. Wahlmahrt has spoiled all of you to think the prices they feature are realistic prices in today's market. They are rarely so. They are using giant buying power and loss leaders to drag you into their vortex. Sears is just smaller and cannot use gimmickry to compete. Wahlmahrt has 50 cash registers up front, and on ANY given day, maybe 4 are operating? YOU PEOPLE have abandoned Sears cause you HAVE to have cheap Chinese crap at the lowest price. Don't bad mouth Sears, it's YOU who killed it. You spoiled idiots.
    • Nick  •  Elmhurst, Illinois  •  4 mths ago
      Went to Sears to do some Christmas shopping and all I heard was Spanish over the store intercom. Didn't know what they were saying, was there a Sale in some Dept, or a Fire???
    • J. C.  •  Columbia, South Carolina  •  4 mths ago
      I remember when in college back in 1974, a detective/instructor in the criminal justice program taught us First Aid. Great teacher and interesting. He brought into his conversation Sears about their Satisfaction Guaranteed motto. He related hows they repainted a women's old but rusty Sears refrigerator. That was why Sears was such a successful company: Good products and they took care of their customers. In the 1980s, MBA types took over Sears and the greed and secondary service took over (Discover Card, Allstate, etc). They forgot the customer and most people my age will tell you about a bad experience with Sears (remember the "bait and switch investigations?"). Some pawn shops in area will no longer accept Craftsman tools (lower quality).

      Some brilliant comments have been posted (stock American made items where possible). Lets see this once great company return to its earlier roots of customer service and quality. Drop the greed mentality along with this, and their business will probably return.
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