Chairman and CEO Edward Lampert — whose hedge fund has forwarded millions in funding to keep the ailing chain afloat — has asked the struggling retailer to sell its prominent Kenmore appliance brand and its home improvement business, the company said Monday. "We understand that Sears has marketed certain of these assets for nearly two years but, with the exception of the Craftsman divestiture, has been unable to reach agreement with potential purchasers on acceptable terms," Lampert wrote in the letter, which Sears posted on its website on Monday. ESL said its non-binding proposal gives the appliance and home improvement business an enterprise value of $500 million. He also said ESL would "be open to making an offer for Sears' real estate," including the assumption of $1.2 billion in debt obligations tied to the properties. But as the company has seen shoppers move on to Target, Walmart and Amazon, and has closed hundreds of stores, cut costs and sold brands to deal with falling sales, Lampert now appears to have reconsidered. "In our view, pursuing these divestures now will demonstrate the value of Sears' portfolio of assets, will provide an important source of liquidity to Sears and could avoid any deterioration in the value of such assets," Lampert wrote. In particular: 
 
 ESL believes that Kenmore is an iconic brand with substantial value and Sears should aggressively pursue a divestiture of all, or a portion of, Kenmore in the near term. Private equity firm ESL Investments is offering to buy struggling Sear’s Kenmore brand and home improvement unit.
– Sears' biggest shareholder appears to be pushing for a breakup of the 125-year-old company that has survived two world wars and the Great Depression. Chairman and CEO Edward Lampert—whose hedge fund has forwarded millions in funding to keep the ailing chain afloat—has asked the struggling retailer to sell its prominent Kenmore appliance brand and its home improvement business, the company said Monday. His private equity firm, ESL Investments, said it might buy the assets if the company is willing to sell. That sent shares of Sears Holding Corp., which have lost more than 70% of their value in the past year, up nearly 5%. Lampert, who combined Sears and Kmart in 2005 after helping bring Kmart out of bankruptcy, has long pledged to turn the company's fortunes around, per the AP. He said the retailer would find ways to capitalize on its best-known brands like Kenmore appliances and DieHard car batteries, as well as its vast holdings of land. But as the company has seen shoppers move on to Target, Walmart, and Amazon, and has closed hundreds of stores, cut costs, and sold brands to deal with falling sales, Lampert now appears to have reconsidered. In his letter to the board, Lampert said Sears has been trying to sell the Kenmore businesses for nearly two years but has been unable to do so. "In our view, pursuing these divestures now will demonstrate the value of Sears' portfolio of assets, will provide an important source of liquidity to Sears and could avoid any deterioration in the value of such assets," he wrote. (Business Insider has the full letter.)