Advance Auto Parts, Inc (NYSE:AAP) has announced that it channeled about $200 million in the purchase of the DieHard car battery brand. Reports indicate that Sears Holdings Corp (OTCMKTS:SHLDQ) has been going through a rough patch financially for several years now. Analysts have cited its financial status as the reason behind the sale of the brand to Advance Auto Parts.
Sears and its approach to difficult financial times
Sears started well, and it even got to a point where it established about 4,000 stores. It generated significant profits and had a massive workforce. The decline of the business giant isn’t getting anyone by surprise. That is because it got to a point where it upheld a downward trend all through.
Many reasons have been cited, ranging from poor management to lack of a strong business drive. The recent sale shows a company at the brink of extinction, but it still wants to cling to glory of the past.
It sounds rather absurd that a company that had about 4,000 stores is heading towards business oblivion. Sources indicate that over the coming year, it will be left with less than 200 stores. This is one of the most significant declines in business, and many investors have lost hope in the company.
Reports also show that there is quite minimal activity in terms of the new investors moving in. Sadly, it would be too ambitious for anyone to invest hopes thinking the company may move back to its lost glory again.
Company has already sold out major brands
It has been carrying out its business operations for over 130 years. DieHard has been one of the leading brands from the company, and it is now losing it to Advance Auto Parts. This is not the first time the company is considering shedding assets. It has always resorted to selling its assets anytime it goes through financial difficulties. Most of its famous brands have been sold out already, and little hope is left.
It was in 2017 that the business took to the sale of its Craftsman tool brand in a business transaction with Stanley Black & Decker, Inc (NYSE:SWK). All seems lost for now, but it is encouraging customers to go buy DieHard boots and other products.