Sears’ CEO leaves firm abruptly

Sears Holdings Corp. abruptly announced the departure of President and Chief Executive Aylwin B. Lewis on Monday, leaving a management void at the top of the department store chain controlled by Chairman Edward S. Lampert. The change comes as the company tries a high-stakes restructuring to reconnect with customers and reinvigorate slumping sales.

Lewis, 52, who also resigned from the board, was an executive at fast-food chain Yum Brands Inc. and had little retail experience when he was hand-picked by Lampert in 2004 to run Kmart and later Sears.

W. Bruce Johnson was named interim CEO while the company looked for a permanent successor.

Monday’s announcement marked the latest chapter for the venerable retailer, which has seen its competitors snatch away customers since Lampert acquired Kmart in 2003 and Sears, Roebuck & Co. in 2005.

At the time, Lampert -- a masterful hedge fund investor who controls all major decisions at Sears Holdings -- promised to reinvigorate the faded retail icons and “transform them into a great company.”

Nearly three years later, his task has been difficult -- if not impossible -- as the company’s 3,800 stores have failed to draw many customers.

“He certainly has his work cut out for him,” Morningstar analyst Kim Picciola said.

For the first three quarters of the year, Sears’ profit has fallen more than 40%.

Meanwhile on Monday, Sears disclosed in a regulatory filing that it might still be interested in acquiring trendy retro-themed retailer Restoration Hardware Inc., but for a lower price than its tentative $6.75-a-share November bid.

Sears, which owns 13.7% of Restoration Hardware, said it was evaluating the latest private equity offer for the Corte Madera, Calif., company. Sears shares rose $1.28 to $100.28 on Monday. They reached a high of $195.18 last April.