By Sabela Ojea

Lands' End is reviewing a letter from its largest shareholder, Edward Lampert, who earlier on Tuesday requested the board to pursue a sale of the company at a substantial premium price.

The apparel retailer confirmed that its board received the letter from Lampert, who said he would be willing to seek a buyer for his 55% stake if the board doesn't choose to sell the entire company, and is looking into his suggestions.

"The Lands' End board of directors welcomes shareholder viewpoints on how best to maximize the value of their investment," the company said.

In the letter, Lampert said that Lands' End's stock price doesn't reflect its improved its gross margins and brand heritage. Shares traded at around $11 before making the public letter, down nearly 50% from nearly $20 per share in October 2024, he said. Shares rose 2.9% to $13.01 after hours on Tuesday.

"This decline is not due to a fundamental weakness, but rather a lack of market recognition of the company's true value," Lampert said. "Given this continuing disconnect, I urge the board to initiate a strategic sale process to maximize value for all shareholders."

A strategic buyer could significantly accelerate growth and reduce operating costs, he said, adding that he is prepare to identify and engage with potential buyers to facilitate the sale.

Lampert is mostly known for being the hedge-fund manager that bet on department store chain Sears and served as its chief executive after rising through Goldman Sachs' risk-arbitrage department in the 1980s before launching his hedge fund.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

February 25, 2025 17:16 ET (22:16 GMT)

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