LAMPERT: Promotes himself. (REUTERS)
Sears Holdings has a new CEO, and you’ll find him in the chainsaw aisle.
Billionaire hedge-fund mogul Eddie Lampert has named himself the struggling retailer’s new chief executive — and insiders say that means asset sales and spinoffs will likely accelerate as he looks to squeeze more cash out of the company.
Current CEO Lou D’Ambrosio is stepping down because of a health matter in his family.
The prickly Lampert, who controls about 60 percent of the shares, has gained the reputation of a micromanager since he merged Sears and Kmart in 2005 and made himself chairman.
But after adding the CEO title beginning Feb. 2, expect him to do what he does best, sources said: slice and dice.
“[Lampert]’s not going to want to do this job very long,” one former Sears executive predicted. “I think he’ll focus on the things he wants to keep and get rid of the things he doesn’t.”
Lately there has been chatter that Lampert is gearing up to exit more of the company’s real estate, closing money-losing Kmart stores and selling prime Sears locations to generate cash.
Indeed, Lampert last month sold Sears Canada’s stake in a mall for $43 million — then announced a special dividend of $102 million.
That strategy may not be as lucrative this year as it was before, said Credit Suisse analyst Gary Balter. One risk: that JCPenney aggressively closes stores as its sales continue to nosedive, flooding the market with empty space.
“If [Penney] starts liquidating locations, that could seriously undermine the real estate asset support argument for Sears,” Balter said in a research note yesterday.
Sears shares, which finished 2012 up 45 percent, closed yesterday down 6.4 percent to $40.16.
While it may be blocked from profiting from disposing of unwanted real estate, insiders say other moves could include separating Sears from Kmart, and spinning off still-smaller parts of the operations.
Last year, Lampert generated $1.8 billion in cash, mainly through asset sales and spinoffs, to stave off a potential liquidity crisis as Sears and Kmart stores continue to lose money.
Sears Holdings — which has posted 23 straight quarters of declining sales — yesterday said it expects to lose as much as $360 million in the current quarter.
It’s not all about selling and breaking up assets, however. People close to the retailer note that Lampert remains closely focused on Sears’ website, whose sales have grown 20 percent during the past two quarters.
“The e-commerce group is delighted [Lampert is] taking control,” according to one source close to the company.
Sears spokesman Chris Brathwaite said Lampert is looking to build on recent sales momentum, which has boosted sales of appliances and clothing.