After controlling the Craftsman name for 90 years, troubled department store operator Sears said it will sell the famous tool brand to Stanley Black & Decker Inc.
Stanley, which makes and sells tools under the DeWalt and Black & Decker names, wants to grow the Craftsman brand by selling its products in more stores outside of Sears. Today, only 10 percent of Craftsman products are sold in other stores. Sears said it will continue to sell Craftsman, including at its Kmart and Sears Hometown stores. The Hoffman Estates, Illinois-based company first took control of Craftsman in 1927 when it bought the trademark for $500.
Sears has struggled, losing money for years as its revenue fell. The company also announced plans Thursday to close 150 stores, about 10 percent of its total 1,500 locations. And last week, the company said it received a credit agreement for up to $500 million to provide it with cash as it sells assets.
The Kmart at 10405 S. Eastern Ave. in Henderson, near the intersection with Coronado Center Drive, was listed among the stores that will close at the end of March. The shopping center was built in 2001, according to county records.
Employees were informed of the decision Wednesday. They will receive severance and an offer to apply for open jobs at nearby Sears and Kmart stores. Liquidation sales start as early as Friday.
Shares of Sears Holdings Corp., which are down about 48 percent in the last 12 months, rose 3 cents to close at $10.39 Thursday.
Stanley will pay Sears about $900 million for Craftsman, which includes $525 million when the deal closes this year, $250 million after three years and a percentage of sales for 15 years. After 15 years, Sears will start paying Stanley 3 percent of the Craftsman sales it makes. Shares of Stanley, based in New Britain, Connecticut, rose $1.87 to $118.35.
Stanley said it plans to hire more workers and open a new U.S. plant to make more Craftsman products, but didn’t provide details.
Earlier this week, Macy’s announced it would close a wave of stores over disappointing holiday sales. One of the stores closing is the 50-plus-year-old Macy’s at Boulevard Mall, near the intersection of Desert Inn Road and Maryland Parkway in Las Vegas.
That store will start clearance sales on Monday and close in about 10 weeks. Eligible full- and part-time employees will receive severance benefits and some employees may be offered jobs at nearby stores, Macy’s spokeswoman Raegan Gall said in a statement Thursday.
Review-Journal writer Wade Tyler Millward contributed to this report. Contact him at (702) 383-4602 or email@example.com. On Twitter: @wademillward