Sears Sails Away From Lands' End

Retail giant completes spin-off plans of the popular clothing chain.
3:00 | 04/07/14

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Transcript for Sears Sails Away From Lands' End
I'm -- that as a financial market close here in New York on this Monday April 7. Docket today we are looking at Sears which has completely -- -- plants and but the future of the psychotic shopping -- perhaps. And out here to explain this year saga is -- in -- on finance -- happy Monday to you. At a 98 and are so everyone check their stock charts today -- -- begin a new life free of lands and but what exactly happened in this holding -- There wasn't -- confusing as he mentioned here is completed spin off of lands and add that happened on Friday and investors in -- Scott fair share of their share -- and it's trading at its own separate thing it -- its own. Ticker symbol Alley is what it trade -- lands and is now completely. -- -- -- here is and so that is reflected in Sears stock price it's it's minus the value of land and it's taken out of the stock taking out ads here is and so that. Should've been reflected in because of the data feed issue it in for much of the day on -- and fees quote pages -- people look for. I did hear that Sears holding was down 1718. Even 20% in reality. The stock was up a little bit over at low single digits one or 2% early this morning and then as the rest of the market more broadly has really. Taken a turn for the worse ending down across the board. We saw -- and fall down banking -- -- but it below 6% so -- plunged yes but 20% now so this is kind of -- -- air but the bigger picture is that it was still a disappointment for -- Did this is what we this -- go to you because -- to dig into the numbers actually find out exactly the 20% -- -- the real story on this one. People -- reprisal in this -- though and Kmart are controlled by hedge fund manager at work Lambert can -- Those two dots. -- so when you think of -- you might -- event like another struggling need to -- -- like JC -- but it's a little bit different because yes -- struggling in the same -- that JC Penney -- with a customer this disappeared and kind of -- shrinking market for this mid -- type of -- -- addition. -- at. Is control is run by hedge fund manager -- he it was involved in -- company for years he. Orchestrated says that takeover of -- the combination Sears and -- back you know -- he was -- in the largest shareholder will then a little over a year ago he took -- completely and became CEO so he's been trying to turn around the company but just what that looks like -- his face a lot of skepticism -- questions one of that. That that this strategy essentially is that he's been selling -- the guy able parts of the business and spinning them off then. That that's kind of what what the strategy -- and people are skeptical about what exactly you know -- going to look like and of the day plenty of headlines have been written over the last year and more you know -- -- heading for bankruptcy. And and just today there's an article in the Wall Street Journal that bondholders since there's so essentially people that have let Sears money. Are concerned that he spinning off all of the parts of the business -- having value and that this is putting bond -- at risk. Because there's going to be having live in the -- did business as they've lent money today essentially it's just -- core businesses falling apart as Sears and Kmart the core retail business. He's just been faced with years and years of declining sales. What was the initial thinking as far as bringing lands and onto the onto the roster. So -- that thinking I. The thinking was back when they acquired eight years and years and but baking and spinning -- -- if it's in this story that I'm talking about witches. Basically spinning off a brand and value Atlanta and is seen as as possessing value having value eight didn't perform all today but it's hard to see exactly what's going -- market more generally has taken a beating today. So little bit confusing with -- -- but that grant is seen as as value and spinning it off is -- is. Part of this strategy and speeding up -- able parts of the business and to get to unlock some value for shareholders of which. I Lampard it owns 40% of the company so he does care very much about the value of the businesses and shareholder value. And as reloaded hasn't of the video there -- you see some lands employees packing up in shipping some customer orders there. It looks very familiar to what else happens inside of an Amazon distribution center which is tight the forbidden word. Inside any Sears store right. I think it am design or anything that reflects real life and real real -- retail and extends would be that nightmare insight -- -- here -- -- Kmart store is series hasn't invested in its stores for years. That's been one of the criticisms -- moment last tiny line Waziristan have you seen you know the condition that he would you ever want to -- there. There are there are things and there are aspects like that there's that broader macro trend which is that people just aren't shopping and -- and mortar stores to the extent that they used to. So much -- gone online which is something that you know you're alluding to you with Amazon and -- because Lampard is talked up the importance of the digital business and online business but that's raised some eyebrows because there's isn't particularly -- it. Beaten. And on the benefiting and the huge online retail businesses not. But nonetheless that's another challenge and also just we've seen a lot of these and mid tier retailers struggle as their customer -- -- a long time about dance hit. Cheaper competitors that were frankly doing the same thing -- -- a -- weather was target. -- Wal-Mart for dollar store is and then coming back -- someone argued that they're not coming back. Are you visit to images I think that that -- here's as I definitely gone through a transformative to get -- go away from deliberately or has some with -- off announcement yesterday take on their softer side of Sears campaign. Which was that very. Home building kind of experience where it was no longer Bob Vila is you know craftsman tool line that you can get something for almost any room in your home. And the other one was the Sears catalog write him in those relate to -- -- -- points. That -- brought into the retail world and now it seems that there that there is somewhat of an identity crisis. Well absolutely I -- Sears auto repair is enough from planned it. -- -- -- -- -- in there and that's another one that they've talked about spinning off I mean what's left at Sears and I was essentially the realist -- And unlocking that value is let shareholders care about the company even closer to -- point of the company closes landmark store in Chicago right. It -- snow is silly disclose its doors that that story day they moved away from that market eight years and years ago but then -- answered back into the back in 2001 that. Again years and years of declining sales -- finally had that to shut its doors a landmark store on State Street after they had at full liquidation sale where people just. You know just kind of clamored for all of the deeply discounted clearance merchandise that is all ended and it's close to store -- yesterday. Sears our story stock for the day Laura Lester Yahoo! finance I'm on a story -- and it really now well we'll have to wait as it was -- -- what everyone loves a comeback though so. There are some folks out there -- some diehards that are waiting to see if it's -- -- -- turned around. Yes it's been -- wishful thinking -- get the craftsman repair belt out because they might have some work to do Laura Lester from Yahoo! finance why thank you so much appreciate you watching store stocks with for latest headlines. And Dan -- New York.

This transcript has been automatically generated and may not be 100% accurate.

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