Sears Holdings files with SEC for Lands' End spinoff

HOFFMAN ESTATES, Ill. – Sears Holdings is spinning off its clothing business, the parent company of Kmart said Friday.

Sears said it had filed with the Securities and Exchange Commission to spin off Lands' End. The company hopes that separating the management of Sears Holdings and Lands' end will make it easier for the latter to pursue opportunities on its own.

The retailer announced in late October that it was looking to spin off the Lands' End and Sears Auto Center businesses in an effort to improve its performance in the third quarter of fiscal year 2013. Calling Lands' End an "iconic brand," Sears Holdings said it has the potential to become a more global brand and that it would not pursue the spinoff as a sale, but as a way to maximize value for shareholders.