History
Sears Holdings spun off Sears Hometown and Outlet Stores in 2012 to attempt to restore profitability and raise shareholder confidence.[11] Sears Holdings spun off more than 1,100 Hometown and 122 outlet stores.[12] Hometown stores are small hardware and appliance stores operated by independent retailers.[12] Outlet stores sell Sears merchandise at discount.[12] Outlet stores are approximately 18,000 square feet and equipped with items such as home appliances, lawn and garden equipment, apparel, mattresses, sporting goods and tools.[2] Outlet stores sell discontinued, used, cosmetically blemished or reconditioned merchandise with new parts.[2][13]
Sears Hometown and Outlet Stores partnered with the National Volunteer Fire Council in November 2013 to raise money for local fire departments.[14] The objective of the campaign was to provide firehouses with funds to improve resources for training, equipment, and financial support.[14]
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.[15]
In April 2019, it was announced that Transform Holdco would acquire the company as a result of its subsidiary Sears opening up 3 Sears Home & Life stores by May 2019.[8][16][17]
However it was reported a few days later that Sears Hometown and Outlet Stores acquisition offer was rejected, as a result, Sears Hometown and Outlet Stores might face liquidation, having a similar fate to Sears Holdings but which got acquired by ESL Investments a few months ago, but its biggest shareholder Eddie Lampert is trying to save the company from liquidation and hopefully continue the acquisition process.[18][19][20]
In June 2019, it was finally announced that Transform Holdco will acquire the remaining shares in the company. As per deal, Sears Hometown and Outlet Stores might need to divest its Sears Outlet division to gain approval.[21] At the time announcement, Sears Hometown and Outlet Stores had 491 Hometown stores and 126 Outlet stores in 49 states, Puerto Rico and Bermuda.[22]
In August 2019, Franchise Group, the parent of Liberty Tax, announced plans to acquire Sears Outlet division from Sears Hometown and Outlet Stores to help fulfill Transform Holdco's requirement in Transform Holdco's acquisition of Sears Hometown and Outlet Stores.[23]
On October 23, 2019, Sears Hometown and Outlet Stores completed its sale of Sears Outlet and Buddy's Home Furnishing businesses to Franchise Group.[24] Transform Holdco completed the acquisition of the remainder of Sears Hometown at the end of the same business day.[25] Stores that were acquired by Franchise Group were re-branded into American Freight stores.
On December 13, 2022, Sears Hometown filed for Chapter 11 bankruptcy.[26] It was later revealed that all remaining Sears Hometown stores would be liquidated and permanently closed.[27] Sears Hometown converted its Chapter 11 case to a Chapter 7 bankruptcy liquidation in February 2023 after losing cash access from PNC Bank that would have helped the company throughout its reorganization.[28]
