Breaking Up With Sears Is Hard to Do

Doug Shumard had semi-retired from running an auto-service business when he decided to buy a Sears Hometown franchise in Lincoln, Ill., in 2008. The $80,000 in startup costs seemed to be a good investment. The Hometown and Outlets division was one of Sears Holdings’ most successful when Shumard bought in. The stores, totaling about 1,300 today, are located in smaller towns across the U.S., far from the retailer’s regular department stores, and feature Sears brands, including Kenmore appliances and Craftsman tools, as well as clearance merchandise.

But ever since Sears spun off the Hometown division in 2012, Shumard and other owners say their business has gone downhill. They’re struggling to stay afloat, they say, after finding some inventory hard to procure and being held responsible for goods never received. They also say the stores are suffering from their connection to the former parent company, which has posted $7.1 billion in losses since 2011.