Sears Hometown and Outlet Stores
Corporate brand
UnclaimedSears Hometown and Outlet Stores was an American retail company operating smaller-format Sears stores and discount outlet locations for appliances, hardware, tools, home goods, and related merchandise.
Last updated August 26, 2026
Overview
Sears Hometown and Outlet Stores was an American retail company created in 2012 when Sears Holdings separated its Hometown and Outlet businesses into an independent publicly traded company. It operated a group of smaller-format retail concepts serving markets that generally could not support a full-size Sears department store. Its principal formats were Sears Hometown stores, Sears Outlet stores, Sears Hardware and Appliance stores, and Sears Home Appliance Showrooms. The Hometown format focused on locally oriented retailing in smaller communities. Most locations were independently owned or operated by local dealers, although the company generally controlled the merchandise assortment and supported the stores through Sears branding, marketing, and distribution. These stores typically sold appliances, lawn and garden equipment, hardware, tools, and other products associated with the Sears portfolio, including Kenmore, Craftsman, and DieHard merchandise. Their relatively small footprints allowed them to operate in freestanding locations and strip-center settings rather than relying on the large suburban department-store properties associated with traditional Sears stores. Sears Outlet served a different retail need. It sold discounted merchandise that could include new products, excess inventory, discontinued goods, out-of-carton items, used or reconditioned products, and merchandise with cosmetic damage. Appliances were especially important to the format, but outlet stores also carried apparel, mattresses, sporting goods, tools, and lawn and garden products. The business developed from Sears surplus stores and later added centralized repair and distribution facilities, e-commerce, and nationwide delivery. Outlet stores were generally larger than Hometown stores and combined clearance retailing with inventory recovery and product liquidation. The 2012 separation was intended to give the businesses greater independence, improve profitability, and provide Sears Holdings with value from assets outside its core department-store operations. At the time of the spin-off, the company included more than 1,100 Hometown locations and 122 outlet stores, although the Hometown network included a substantial number of independently operated dealers. By May 2019, the broader network of company-operated, dealer, and franchise locations totaled 639 stores across 49 states, Puerto Rico, and Bermuda. The company remained separate from Sears Holdings when Sears Holdings entered Chapter 11 bankruptcy protection in October 2018. It nevertheless faced strategic and financial pressure as the retail market weakened and as its connection to the Sears brand became increasingly tied to the restructuring of Sears Holdings. In 2019, Transform Holdco, the entity that acquired the Sears and Kmart operating businesses from Sears Holdings, agreed to acquire the remaining Sears Hometown operations. Regulatory and transaction requirements led to the separation of the Sears Outlet and Buddy's Home Furnishings businesses. Franchise Group acquired those assets on October 23, 2019, while Transform Holdco acquired the remaining Hometown-related operations. The Hometown business continued as a Sears-branded, locally oriented retail operation under Transform Holdco, but its store base contracted sharply. Numerous locations closed during 2022, leaving fewer than 150 stores by September of that year. Sears Hometown filed for Chapter 11 bankruptcy protection on December 13, 2022. The case was converted to Chapter 7 liquidation in February 2023 after the company lost access to cash that had been expected to support a reorganization. The remaining stores were subsequently slated for liquidation and permanent closure. The corporate company therefore ceased operating as a going concern, while the former outlet assets continued under Franchise Group's American Freight business and the Sears name persisted in other, separately controlled retail activities.
History
Sears Hometown and Outlet Stores originated within Sears Holdings as a collection of smaller stores and surplus-oriented retail operations. Hometown stores, formerly associated with Sears dealer stores, were designed for smaller communities that did not support a conventional Sears department store. They generally focused on appliances, hardware, tools, and lawn-and-garden merchandise. Local operators commonly owned or leased the premises, while Sears supplied inventory, branding, and marketing support. This model gave the stores a community-based presence while retaining access to national merchandise brands such as Kenmore, Craftsman, and DieHard. The outlet business had an older history within Sears. The company opened a surplus store in Kansas City in 1968, and the surplus format was renamed Sears Outlet in 1994. During the 1990s, Sears developed centralized outlet repair and distribution centers to process and redistribute returned, damaged, discontinued, and other nonstandard merchandise. Apparel was added during the late 2000s, including liquidation merchandise associated with Lands' End. Sears Outlet launched an e-commerce site in 2009 and added nationwide delivery in 2011, expanding the concept beyond physical clearance stores. In April 2012, Sears Holdings spun off more than 1,100 Hometown stores and 122 Outlet stores into Sears Hometown and Outlet Stores. The separation was intended to improve the businesses' profitability and give investors a more distinct view of the smaller-format and outlet operations. Hometown stores were predominantly independently owned, whereas most Outlet stores were company-operated, with a smaller number run by local franchisees. Outlet locations generally occupied larger spaces and sold appliances, apparel, mattresses, tools, sporting goods, and lawn-and-garden products at discounts. Merchandise could be new, out of carton, overstocked, obsolete, discontinued, used, reconditioned, or cosmetically blemished. The company pursued community and customer-engagement initiatives during the 2010s. It partnered with the National Volunteer Fire Council in 2013 to raise funds for local fire departments and worked with Make-A-Wish in 2014. It also received a Customer Engagement award from Retail TouchPoints for an interactive in-store campaign, although the available reference material does not identify the campaign's formal name or date. Sears Hometown and Outlet Stores was legally separate from Sears Holdings when the parent filed for Chapter 11 bankruptcy in October 2018. The separation insulated the company from being a direct debtor in that filing, but the decline of the broader Sears retail ecosystem created commercial and strategic pressure. In 2019, Transform Holdco, which had acquired the Sears and Kmart operating businesses, pursued the acquisition of Sears Hometown and Outlet Stores. The transaction required the Outlet division to be divested. Franchise Group agreed to acquire Sears Outlet and Buddy's Home Furnishings, and the transaction closed on October 23, 2019. Transform Holdco acquired the remaining Sears Hometown operations on the same business day. The former Sears Outlet stores were later rebranded as American Freight after Franchise Group acquired American Freight. The remaining Hometown business continued under Transform Holdco but steadily contracted. Closure programs in 2022 removed many locations, leaving fewer than 150 stores by September. On December 13, 2022, Sears Hometown filed for Chapter 11 bankruptcy protection. The case was converted to Chapter 7 liquidation in February 2023 after the company lost access to cash that could have supported a restructuring. The remaining Hometown stores were liquidated and permanently closed, bringing the company's operating history to an end. The Sears brand continued in other contexts, but Sears Hometown and Outlet Stores no longer existed as an operating company.
- 2023
Conversion to Chapter 7 liquidation
[1]The bankruptcy case was converted to Chapter 7, and the remaining stores were liquidated and permanently closed.
- 2022
Large-scale Hometown closures
[1]Successive closure announcements substantially reduced the remaining Hometown store network.
- 2022
Chapter 11 bankruptcy filing
[1]Sears Hometown filed for Chapter 11 bankruptcy protection.
- 2020
Outlet stores transition to American Freight
[1]The former Sears Outlet stores were rebranded under the American Freight identity.
- 2019
Business divisions are sold
[1]Franchise Group acquired the Outlet and Buddy's businesses, while Transform Holdco acquired the remaining Hometown operations.
- 2018
Sears Holdings files for Chapter 11
[1]Sears Holdings entered bankruptcy protection; Sears Hometown and Outlet Stores was not directly included because it had been spun off in 2012.
- 2013
National Volunteer Fire Council partnership
[1]The company began a fundraising initiative benefiting local fire departments.
- 2012
Sears Hometown and Outlet Stores is spun off
[1]Sears Holdings separated the Hometown and Outlet businesses into an independent company.
- 2011
Nationwide Sears Outlet delivery begins
[1]Sears Outlet expanded its fulfillment proposition by offering nationwide delivery.
- 2009
SearsOutlet.com launches
[1]The outlet business introduced an e-commerce channel for discounted merchandise.
Showing the 10 most recent.
Products and positioning
A smaller-market Sears retail network combining locally operated neighborhood stores with discount, clearance, refurbished, and outlet merchandise channels.
Small-format hardware and appliance retail · 2012
Sears Hometown
Sears Hometown stores were compact, community-oriented locations serving smaller markets. They primarily sold appliances, hardware, tools, and lawn-and-garden equipment, including Sears-associated brands such as Kenmore, Craftsman, and DieHard. Many stores were independently owned or operated by local dealers, with Sears providing inventory, branding, and marketing support. The format was intended to offer local convenience without the real-estate scale of a full Sears department store.
Discount and outlet retail · 1994
Sears Outlet
Sears Outlet stores sold merchandise at reduced prices, including new, discontinued, overstocked, out-of-carton, used, reconditioned, obsolete, and scratch-and-dent products. Appliances were the central category, supplemented by apparel, mattresses, sporting goods, tools, and lawn-and-garden equipment. The format operated in large stores and online, using repair and distribution infrastructure to recover value from merchandise that might not have been suitable for conventional department-store sale.
Hardware and appliance retail
Sears Hardware and Appliance
Sears Hardware and Appliance stores were larger specialty locations carrying the Sears hardware and appliance assortment. Averaging approximately 28,000 square feet, they generally served suburban markets. The format was distinct from the smaller Hometown stores but shared an emphasis on home maintenance, tools, and appliances. All locations had closed by June 2019.
Appliance showroom
Sears Home Appliance Showroom
Sears Home Appliance Showrooms were independently owned and operated specialty stores licensed under the Sears name. They typically averaged about 5,000 square feet and displayed appliance products in a showroom environment. Customers could use in-store internet kiosks to view additional products, compare prices, and order merchandise not physically stocked at the location. Fifteen locations were operating by October 2019; the format's website was later deactivated and redirected to Sears.com.
Marketing campaigns
- 2014Make-A-Wish partnership
United States
Sears Outlet partnered with Make-A-Wish to support children living with life-threatening conditions.
- 2013National Volunteer Fire Council fundraising partnership
United States
Sears Hometown and Outlet Stores partnered with the National Volunteer Fire Council to raise funds for local fire departments. The stated purpose was to support firehouse training, equipment, and financial resources.
Brand decisions
2023
Conversion from Chapter 11 to Chapter 7OtherBackground
Sears Hometown filed for Chapter 11 protection in December 2022 but later lost access to cash that had been expected to support its reorganization.
Action taken
The bankruptcy case was converted to Chapter 7 liquidation in February 2023.
Aftermath
All remaining Sears Hometown stores were liquidated and permanently closed.
2022
Hometown store closure programStrategyBackground
The remaining Sears Hometown network had contracted substantially and the company faced continuing operating and financial difficulties.
Action taken
The company announced successive closure programs affecting approximately 70 stores and then roughly 100 additional locations.
Aftermath
Fewer than 150 stores remained by September 2022, shortly before the company's Chapter 11 filing.
2019
Sale of the company and divestiture of Sears OutletM&ABackground
Transform Holdco sought to acquire Sears Hometown and Outlet Stores, but the transaction structure required separation of the Sears Outlet division.
Action taken
Franchise Group acquired Sears Outlet and Buddy's Home Furnishings, while Transform Holdco acquired the remaining Hometown operations on October 23, 2019.
Aftermath
The former Outlet stores were subsequently converted to the American Freight brand, while Sears Hometown continued under Transform Holdco until its later liquidation.
2012
Spin-off from Sears HoldingsStrategyBackground
Sears Holdings separated its Hometown and Outlet operations while attempting to improve profitability and strengthen investor confidence.
Action taken
More than 1,100 Hometown stores and 122 Outlet stores were placed into the newly independent Sears Hometown and Outlet Stores company.
Aftermath
The separation kept the company legally distinct from Sears Holdings when Sears Holdings later entered Chapter 11 bankruptcy, although the business continued to face declining store counts and financial pressure.
Recent events
- 2023
Sears Hometown bankruptcy case converts to Chapter 7[1]
Bankruptcy
The bankruptcy case was converted to Chapter 7 liquidation after the company lost access to cash needed for a reorganization, leading to the liquidation and permanent closure of remaining stores.
- 2022
Sears Hometown announces extensive store closures[1]
Bankruptcy · Other
The company announced successive closure programs affecting dozens of Hometown stores, reducing the remaining network to fewer than 150 locations by September.
- 2022
Sears Hometown files for Chapter 11 bankruptcy protection[1]
Bankruptcy
Sears Hometown sought Chapter 11 protection as its store base and financial resources deteriorated.
- 2020
Sears Outlet stores are rebranded as American Freight[1]
M&A
After Franchise Group acquired American Freight, the former Sears Outlet locations were progressively converted to the American Freight identity.
- 2019
Sears Hometown and Outlet Stores becomes subject to a Transform Holdco acquisition[1]
M&A
Transform Holdco agreed to acquire the company, with the Sears Outlet division separated to satisfy transaction requirements.
- 2019
Franchise Group acquires Sears Outlet and Buddy's businesses[1]
M&A
Franchise Group acquired the Sears Outlet and Buddy's Home Furnishings businesses, while Transform Holdco acquired the remaining Sears Hometown operations.
- 2014
Sears Outlet expands its online and discounted-merchandise model[1]
Product launch
Sears Outlet expanded its store network and continued selling discounted, discontinued, used, reconditioned, overstocked, and cosmetically blemished merchandise through stores and online channels.
- 2013
Sears Hometown partners with the National Volunteer Fire Council[1]
Campaign
The company launched a fundraising partnership intended to help local fire departments improve training, equipment, and financial support.
- 2012
Sears Holdings spins off Hometown and Outlet businesses[1]
M&A
Sears Holdings separated its Hometown and Outlet operations into Sears Hometown and Outlet Stores, creating an independent company with smaller-format stores and outlet locations.
Sources1 sources
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