Sears Holdings
Corporate brand
UnclaimedA former American retail holding company created by the 2005 combination of Kmart and Sears, which entered bankruptcy in 2018 and transferred its principal assets to Transformco.
Last updated October 17, 2026
Overview
Sears Holdings was an American retail holding company formed in 2005 when Kmart Holding Corporation acquired Sears, Roebuck and Co. The transaction brought two longstanding American retail chains under one corporate structure while preserving their separate store identities. Sears Holdings operated Sears and Kmart stores, sold merchandise through their websites, managed a portfolio of proprietary brands and services, and controlled or held interests in related businesses in the United States and abroad. The combination was presented as a way to unite Sears's department-store, appliance, tool, automotive, and home-improvement capabilities with Kmart's discount-store footprint. Management expected the merged company to gain purchasing, distribution, administrative, and real-estate efficiencies. It also intended to use the two banners to address different customer groups without immediately eliminating either brand. In practice, the company struggled to translate its large store base and valuable private labels into sustained retail growth. Store investment weakened, sales declined for many years, and the business increasingly relied on asset sales, financial transactions, cost reductions, and financing from affiliated parties. During its existence, Sears Holdings experimented with new store formats, cross-brand merchandising, service marketplaces, automotive franchising, standalone appliance stores, and broader distribution for brands such as Craftsman, Kenmore, and DieHard. It also divested or spun off assets including Orchard Supply Hardware, Lands' End, and real-estate interests later associated with Seritage Growth Properties. In 2017, the company sold the Craftsman brand to Stanley Black & Decker while retaining rights to sell Craftsman products under licensing arrangements. Eddie Lampert was the central figure in the company's later years, serving as chairman, chief executive officer, and a major shareholder while also leading ESL Investments. The company announced extensive store closures and other restructuring measures as sales continued to deteriorate. In October 2018, Sears Holdings filed for Chapter 11 bankruptcy protection in the United States. Lampert resigned as chief executive while remaining chairman, and several senior executives temporarily shared executive responsibilities. Sears Holdings was later acquired through the bankruptcy process by ESL Investments, and its Sears and Kmart operating assets were placed in Transformco, a newly established affiliate. The Sears Holdings corporate structure ceased to function as the former publicly traded retailer, although Sears and Kmart stores and associated brands continued in reduced form under new ownership.
History
Sears Holdings emerged from the 2005 merger of Kmart Holding Corporation and Sears, Roebuck and Co. Kmart had recently completed its own bankruptcy reorganization, while Sears brought a broad department-store network, established appliance and automotive businesses, and valuable private labels. The transaction closed on March 24, 2005, after shareholder and regulatory approval. Kmart and Sears became subsidiaries of the newly created holding company, and management retained both store names rather than converting the entire network to a single banner. The merger was intended to produce scale benefits. Sears had been developing larger off-mall formats such as Sears Grand, while Kmart contributed a discount-oriented store base and additional real estate. Management expected purchasing and supply-chain savings, lower administrative costs, improved use of stores, and wider distribution for proprietary brands. Early initiatives included Sears Essentials, which adapted selected Kmart locations and other acquired properties into a Sears-oriented format. The company also began placing merchandise traditionally associated with one banner in stores operated under the other, including Craftsman tools in Kmart locations. Sears Holdings remained active in retail and related services during the late 2000s. It operated Sears and Kmart stores, participated in businesses such as Sears Canada and Sears Mexico, developed online commerce, and launched ServiceLive to connect customers with independent contractors. It also experimented with automotive franchising and standalone appliance stores. At the same time, the company pursued financial and structural transactions involving real estate, subsidiaries, brands, and other assets. Orchard Supply Hardware was partly sold and later spun off, while Lands' End was separated as an independent public company. The company entered the 2010s with a deteriorating retail performance. Store sales and traffic declined, and the business announced repeated rounds of closures affecting both Sears and Kmart. Critics and some investors argued that management's emphasis on cost reduction, financial engineering, share repurchases, and asset monetization left too little capital for store modernization and customer experience. Sears Holdings responded with additional online initiatives, membership and digital programs, expanded brand distribution, service businesses, and efforts to unlock value from its real-estate portfolio. In 2015, Sears Holdings placed hundreds of properties into a new real-estate investment structure associated with Seritage Growth Properties. The transaction provided financing and liquidity but also reduced the operating company's direct control over parts of its store base and became controversial among investors. In 2017, the company sold Craftsman to Stanley Black & Decker, retaining contractual rights to continue selling Craftsman products. It also sought financing and support from Eddie Lampert and entities associated with ESL Investments while announcing further store closures. The decline accelerated in 2018. Sears Holdings reported continuing losses, reduced its store count, and faced concerns about debt, pensions, suppliers, and liquidity. On October 15, 2018, it filed for Chapter 11 bankruptcy protection. Lampert stepped down as chief executive while remaining chairman, and Robert Riecker, Leena Munjal, and Greg Ladley were assigned shared interim executive responsibilities. The company continued liquidation and restructuring activity during the bankruptcy process. After a court-supervised sale, ESL Investments acquired the principal operating assets and placed them in Transformco. Sears Holdings therefore ceased to exist as the former independent public retail holding company, although selected Sears and Kmart operations survived under the new ownership.
- 2019
Operating assets move to Transformco
[1]ESL Investments acquired selected Sears Holdings assets through bankruptcy proceedings and placed them in Transformco.
- 2018
Chapter 11 bankruptcy filing
[1]Sears Holdings filed for Chapter 11 protection on October 15 after years of declining sales and financial pressure, and announced another wave of store closures.
- 2017
Craftsman is sold
[1]Stanley Black & Decker agreed to acquire Craftsman for reported cash consideration plus royalties on later sales, while Sears retained licensing rights.
- 2017
Craftsman sale announced
[1]Sears Holdings agreed to sell Craftsman to Stanley Black & Decker while retaining licensing rights.
- 2015
Seritage real-estate transaction
[1]Sears Holdings transferred 235 properties into Seritage Growth Properties, a real-estate investment structure backed by a reported $925 million loan.
- 2015
Seritage Growth Properties is created
[1]A large group of Sears and Kmart properties was transferred into a new real-estate investment trust.
- 2014
Lands' End becomes independent
[1]The Lands' End catalog business was separated from Sears Holdings, and its shares began trading as an independent company after distribution to stockholders.
- 2011
Orchard Supply Hardware holdings spun off
[1]Sears Holdings announced the distribution of its remaining Orchard Supply Hardware interest to shareholders.
- 2008
Servicelive.com launches
[1]Sears introduced an online marketplace connecting customers with local contractors for home-improvement projects.
- 2007
Private-label intellectual property is reorganized
[1]Kenmore, Craftsman, and DieHard trademarks were placed in KCD IP, a separate wholly owned subsidiary that issued bonds and was used in the company's financing structure.
Showing the 10 most recent.
Products and positioning
A multi-banner American mass retailer combining Sears's department-store and service heritage with Kmart's discount-store positioning. The company increasingly emphasized private-label brands, membership and digital commerce, automotive and home services, and monetization of real estate and intellectual property. Value-oriented mass retail and multi-brand store portfolio
Department-store retail
Sears
The Sears banner formed the department-store side of Sears Holdings. Its stores traditionally focused on appliances, tools, home furnishings, clothing, electronics, automotive products, and home-improvement services. Sears Holdings operated traditional mall and freestanding stores, larger Sears Grand locations, specialty formats, and service-linked retail locations, and attempted to refresh the format through Sears Essentials, appliance stores, online retail, and service offerings. The chain's footprint contracted substantially before and during bankruptcy, and the banner was transferred to Transformco.
Discount-store retail
Kmart
Kmart was the discount-store banner acquired by Sears Holdings. It sold general merchandise, apparel, household goods, seasonal products, groceries in selected locations, consumer products, selected proprietary-brand merchandise, and other value-oriented merchandise. The banner remained operational alongside Sears, allowing the company to serve a different customer segment, but it experienced persistent sales declines and extensive store closures before being transferred to Transformco.
Appliances
Kenmore
Kenmore was Sears Holdings' principal appliance private label, covering products such as refrigerators, ranges, laundry appliances, and related household equipment. The brand was one of the company's most recognizable proprietary assets and was included with Craftsman and DieHard in the KCD IP intellectual-property structure. Kenmore was a major Sears house brand covering appliances such as refrigerators, washing machines, dryers, ranges, and related household equipment. It was one of the most important proprietary brands associated with Sears and was included with Craftsman and DieHard in the KCD IP structure. Kenmore was Sears Holdings' principal appliance private label, covering products such as refrigerators, ranges, washing machines, dryers, and related household equipment. The brand was one of the company's most recognizable proprietary assets and was included with Craftsman and DieHard in the KCD IP intellectual-property structure. It continued under new ownership after the parent restructuring.
Tools and hardware
Craftsman
Craftsman was a major tools and hardware brand sold through Sears and, after the merger, increasingly through Kmart and other channels, spanning hand tools, power tools, outdoor equipment, and related products. Sears Holdings sold the brand to Stanley Black & Decker in 2017 while retaining licensing rights that allowed Sears and Kmart to continue offering Craftsman products for a period. Craftsman was Sears Holdings’ prominent tools and hardware brand, spanning hand tools, power tools, outdoor equipment, and related products. The brand was distributed beyond Sears through selected Kmart locations and was sold to Stanley Black & Decker in 2017, subject to continuing licensing arrangements for Sears and Kmart.
Automotive products and services
DieHard
DieHard was an automotive battery and related automotive-products brand associated with Sears. Sears Holdings also piloted a standalone DieHard Auto Center concept, intended to extend the brand beyond traditional Sears Auto Center locations attached to department stores. DieHard was associated primarily with automotive batteries and other vehicle products sold through Sears Auto Centers and related channels. Sears Holdings also tested a standalone DieHard-branded auto-service concept as the store network contracted. DieHard was an automotive battery and related automotive-products brand associated with Sears, sold through Sears Auto Centers and related channels. Sears Holdings also piloted a standalone DieHard Auto Center concept in San Antonio, intended to extend the brand beyond traditional Sears Auto Center locations attached to department stores. The brand continued under new ownership after the parent restructuring.
Home-improvement services · 2008
ServiceLive
ServiceLive was an online service marketplace launched by Sears Holdings in 2008. It connected customers seeking home-improvement work with local contractors and collected a fee based on completed contracts. The platform was redesigned in 2010 as the company developed its broader services strategy.
Department stores · 2005
Sears stores
The Sears banner sold appliances, tools, clothing, home goods, electronics, automotive products, and other general merchandise. Sears Holdings operated traditional mall and freestanding stores, larger Sears Grand locations, specialty formats, and service-linked retail locations. The chain was progressively reduced through closures and restructuring before the parent company entered bankruptcy.
Discount stores · 2005
Kmart stores
Kmart operated as the group’s discount-store banner, selling everyday household goods, apparel, groceries, consumer products, and selected proprietary-brand merchandise. Sears Holdings attempted to use its combined footprint and cross-brand assortment to improve Kmart’s competitiveness, but the chain experienced prolonged store and sales declines.
Automotive services
Sears Auto Centers
Sears Auto Centers provided vehicle maintenance, repair, tires, batteries, and related automotive services. In 2010, Sears Holdings introduced an independent franchise model intended to allow automobile dealers to operate licensed Sears Auto Centers. The business was reorganized under new ownership.
Controversies
2015
Investor challenge to the Seritage real-estate transaction
Investors challenged Sears Holdings' transfer of Sears and Kmart properties into the Seritage structure, arguing that the assets may have been undervalued and raising concerns about Eddie Lampert's involvement on both sides of the transaction. The matter was settled with an agreement reportedly involving a $40 million payment.
Marketing campaigns
- 2017DieHard Auto Center pilot
United States
Sears Holdings piloted a standalone DieHard-branded automotive service location in San Antonio, extending the automotive brand beyond Sears department-store sites. The source material identifies the location as a pilot but does not establish a broad rollout.
Outcome. The source material identifies the location as a pilot but does not establish a broad rollout. The pilot reflected an effort to extend a proprietary brand as the traditional store base contracted.
- 2017Digital-first marketing shift
United States
Sears and Kmart increasingly relied on online marketing rather than national television advertising during the 2017 holiday period. Sears and Kmart increasingly relied on online marketing rather than national television advertising during the 2017 holiday period, reflecting the company's effort to reduce marketing costs and emphasize digital channels during financial restructuring.
Outcome. The shift reflected the company's effort to reduce marketing costs and emphasize digital channels during financial restructuring.
- 2008Servicelive.com
United States
Sears launched an online service intended to connect customers with local contractors for home-improvement projects, extending the company beyond merchandise sales. The service was redesigned in 2010 and became part of the company's broader service strategy.
Outcome. The service was redesigned in 2010 and became part of the company’s broader service strategy.
- 2005Sears Essentials format
United States
Sears Holdings introduced Sears Essentials as a hybrid store format, converting selected Kmart locations and other properties into stores that combined Sears merchandise and branding with a discount-oriented layout. The concept was later revised and folded into the broader Sears Grand format. Sears Holdings tested a hybrid store format combining Sears merchandise and presentation with elements of the Kmart mass-retail model. Some Kmart locations and properties acquired from other retailers were converted as part of the experiment.
Outcome. The concept was later revised and folded into the broader Sears Grand format.
Brand decisions
2018
File for Chapter 11 bankruptcy protectionOtherBackground
The company faced prolonged sales declines, substantial losses, store closures, debt obligations, and difficulty meeting a debt payment due on the filing date.
Action taken
Sears Holdings filed for Chapter 11 protection on October 15, 2018, announced additional store closures, and replaced Lampert as chief executive with shared interim executive responsibilities. The company filed for Chapter 11 bankruptcy protection, announced store closures, and began a court-supervised asset-sale and restructuring process.
Aftermath
The company was delisted from Nasdaq, underwent a bankruptcy sale, and transferred its principal operating assets to Transformco. ESL Investments acquired selected operating assets in 2019, which were moved into Transformco. Sears Holdings ceased operating as the former public parent.
2017
Sell the Craftsman brandM&ABackground
Sears Holdings sought liquidity and broader distribution for a valuable private-label asset while continuing to operate its stores.
Action taken
The company agreed to sell Craftsman to Stanley Black & Decker while retaining licensing rights for continued Sears sales.
Aftermath
Sears and Kmart continued offering Craftsman products under licensing arrangements, while Stanley Black & Decker obtained ownership of the brand.
Reported upfront consideration. $900 million plus royalties (2017 agreement)
2017
Sell Craftsman to Stanley Black & DeckerM&ABackground
Sears Holdings sought financing and broader distribution for a valuable proprietary brand during a period of declining retail performance.
Action taken
The company agreed to sell Craftsman to Stanley Black & Decker for cash plus royalties on certain future sales, while retaining licensing rights for Sears and Kmart.
Aftermath
Craftsman gained a new owner and expanded distribution potential, while Sears retained access to the brand under licensing arrangements.
Purchase price. 900 million USD plus royalties (2017)
- Stanley Black & Decker — Acquired Craftsman and announced plans to broaden the brand’s distribution.
2015
Monetize retail real estate through SeritageStrategyBackground
Sears Holdings needed liquidity while owning a large portfolio of stores and other properties.
Action taken
The company transferred 235 properties into a new real-estate investment structure supported by a reported $925 million loan.
Aftermath
The transaction provided financing but attracted investor criticism and reduced the operating company's direct ownership of significant real estate.
Loan supporting the property transaction. $925 million (2015)
2015
Create Seritage Growth PropertiesStrategyBackground
Sears Holdings needed liquidity and sought to monetize retail real estate while continuing to operate stores in selected properties.
Action taken
The company transferred 235 properties into Seritage Growth Properties, supported by a financing arrangement.
Aftermath
The transaction generated liquidity but drew investor criticism and litigation over valuation and governance.
Loan supporting property transaction. 925 million USD (2015)
2014
Spin off Lands' EndStrategyBackground
Sears Holdings sought to separate a non-core catalog and apparel business while distributing value to its stockholders.
Action taken
The company distributed Lands' End shares to Sears Holdings shareholders, and Lands' End began trading independently.
Aftermath
Lands' End became a separate public company, reducing Sears Holdings’ direct operating portfolio.
2011
Announce broad store closuresStrategyBackground
Weak holiday performance and continuing deterioration in store sales led Sears Holdings to reduce its physical-store footprint.
Action taken
The company announced closures affecting approximately 100 to 120 Sears and Kmart stores.
Aftermath
Store reductions became a recurring part of the company's restructuring strategy through the remainder of its existence.
2005
Merge Kmart and Sears under a new holding companyM&ABackground
Kmart and Sears sought greater scale, distribution efficiencies, real-estate utilization, and broader circulation for proprietary brands while preserving two distinct retail banners.
Action taken
Sears Holdings was established as the parent company of Sears and Kmart after the transaction closed on March 24, 2005.
Aftermath
The combined company became a major American retailer but did not reverse the long-term decline of either chain.
Recent events
- 2019
ESL Investments acquires Sears Holdings assets[1]
Bankruptcy · M&A
Assets were sold through the bankruptcy process to ESL Investments and placed into Transformco.
- 2018
Sears Holdings files for Chapter 11 bankruptcy[1]
Bankruptcy
The company sought Chapter 11 protection after prolonged sales declines, mounting obligations, store closures, and difficulty meeting debt payments.
- 2018
Sears Holdings is delisted from Nasdaq[1]
Bankruptcy
Following the bankruptcy filing and a share price below Nasdaq's minimum requirement, the company's securities were removed from Nasdaq and traded over the counter.
- 2018
Sears Canada ceases operations[1]
Bankruptcy
Sears Canada's remaining stores closed as the Canadian retail business ended operations.
- 2017
Craftsman brand sale announced[1]
M&A
Sears Holdings agreed to sell Craftsman to Stanley Black & Decker while retaining the ability to sell Craftsman merchandise under licensing arrangements.
- 2015
Sears Holdings creates Seritage real-estate structure[1]
Other
The company transferred a large group of properties into a real-estate investment structure backed by financing, monetizing stores and other real estate.
- 2015
Sears creates Seritage Growth Properties[1]
Other
The company transferred a substantial portfolio of stores into a new real-estate investment trust as part of a liquidity and asset-monetization strategy.
- 2014
Lands' End separation begins[1]
Other
Sears Holdings separated its Lands' End catalog business and distributed shares to its stockholders; Lands' End subsequently traded independently.
- 2014
Lands' End is separated from Sears Holdings[1]
M&A
Sears Holdings distributed Lands' End shares to its stockholders, making the catalog and apparel business a separate public company.
- 2011
Sears announces broad store closures[1]
Other
Following weak holiday performance, Sears Holdings announced closures affecting Sears and Kmart locations.
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Sources1 sources
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