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Sears Holdings announced that it plans to pursue alternatives for the separation of the company's Orchard Supply Hardware business.

This could include a sale of the business or an IPO. Orchard Supply Hardware has 82 hardware and garden retail stores in California.

Alan J. Lacy, vice chairman and CEO of Sears Holdings Corporation, said, "Sears Holdings is focusing its management attention and capital on the opportunities in our core business presented by the merger of Sears and Kmart. While we continue to believe in Orchard's business model and growth strategy, we are pursuing alternatives to provide Orchard Supply Hardware with the capital to grow its store base, while at the same time providing appropriate value to Sears Holdings."

Citigroup Global Markets and Lehman Brothers are acting as financial advisors to Sears Holdings.

According to MarketWatch, Sears Holdings stock gave up about 0.6% to $143.87.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.