Sears stumbles in Restoration Hardware bid

Share this content:

In the middle of a well-publicized, but not necessarily well-received, bid to acquire Restoration Hardware last week, Sears Holdings Corp. said its third quarter net income plummeted to $2 million from $196 million last year.

The retailer's total domestic comparable store sales declined 4.6%, with both Kmart and Sears experiencing lower sales across most merchandise categories. The exception is home electronics sales at Sears. Revenues totaled $11.5 billion, a decline of $0.4 billion from last year.

Last week, Sears offered to acquire Restoration Hardware for $6.75 per share in cash. However, the two companies have failed to agree because of a confidentiality agreement that would prevent Sears from making a tender offer outside of the process.

On November 8, Restoration Hardware said that it had agreed to be acquired in a deal valued at $6.70 per share, or $267 million, involving management and private equity firm Catterton Partners, but the retailer is soliciting competing proposals until December 13. Some in the industry have questioned how mid-priced Sears would incorporate the upscale home furnishings brand.

Sign up to our newsletters

Company of the Week

USAData helps businesses find new customers and grow their current customers through a combination of data and digital marketing services, and easy-to-use SaaS technology products. We enrich customer data so businesses can more effectively target and communicate with customers, and connect them with their best look-alike prospects through digital and traditional channels. We make it easy through simple, self-serve applications and APIs, as well as through full-service programs managed by our Data and Digital experts. 

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above