Sears transfers ownership of the DieHard brand to Advance Auto Parts for a value of $200 million.

In the ever-changing landscape of retail, both Sears and its iconic DieHard brand are undergoing significant transformations.

Advance Auto Parts, a leading automotive parts retailer, recently acquired the DieHard battery brand from the new Sears for $200 million. Tom Greco, CEO of Advance Auto Parts, expressed his admiration for the DieHard brand's reputation and sees potential to extend it into other automotive categories.

The sale of the DieHard battery brand marks a new chapter for the brand, which was once a staple in Sears' product offerings. However, Sears, now largely composed of lawyers' bills, had its full liquidation and Chapter 11 plan approved in bankruptcy court this month.

Sears, under owner-chairman Eddie Lampert, has been actively restructuring its operations. The company recently acquired Sears Hometown, a move that is expected to accelerate its transition to smaller format stores. However, Sears Hometown, owned by the new Sears, is currently experiencing a decline in sales and financial losses.

Despite the challenges, Sears has obtained an exclusive, royalty-free, perpetual license to develop and sell DieHard branded products in non-automotive categories such as sporting goods, lawn and garden, and work wear. This could potentially open new avenues for the brand, moving beyond its traditional automotive focus.

In the past, Sears has looked for buyers for the DieHard and Kenmore brands without success. Eddie Lampert, as CEO of the old Sears (Sears Holdings), sold the prized Craftsman brand. Recently, there have been reports suggesting that the new Sears is contemplating selling the DieHard battery brand along with other assets, according to a Wall Street Journal report.

Retailers, including Sears, are reworking their stores to better suit shoppers' needs. Complementary shop-in-shops, age-appropriate experiences, and integrated technology are some ways retailers are adapting. The new Sears, with its focus on smaller format stores, is expected to incorporate these strategies to attract and retain customers.

However, the financial health of the new Sears remains a concern. Under the new ownership, the company is borrowing money at a high rate. The new company, which is expected to have about 300 stores left by the end of the year, is a significant decrease from a decade ago when it had about 12 times that many stores in the U.S.

The future of these iconic brands, DieHard and Sears, remains uncertain as they navigate through these transformations. But one thing is clear, they are adapting to the changing retail landscape in their quest for survival and growth.

Sears transfers ownership of the DieHard brand to Advance Auto Parts for a value of $200 million.