Berkowitz says he’s departing Sears board

Struggling retailer’s No. 2 investor out after less than 2 years

Sears Holdings said Monday that Bruce Berkowitz, the troubled retailer’s second-largest investor, is leaving the company’s board of directors.

Berkowitz is the chief investment officer of Fairholme Capital Management, which reported in an Aug. 14 regulatory filing that it held approximately 28.9 million shares of Sears Holdings, the parent of the Sears and Kmart retail chains. He will leave the board effective Oct. 31, less than two years after he joined it in Feb. 2016.

While stepping down from the board, Berkowitz is closing his Fairholme Partnership hedge fund and distributing its holdings, including a stake in Sears Holdings, to investors, Bloomberg News reported.

Shares of Hoffman Estates, Ill.based Sears Holdings closed down 11.5% Monday to $5.99.

Sears Holdings said Berkowitz’s departure did not result from any disagreement “on matters related to the company’s operations, policies or practices.”

Additionally, the company said it had not been told about any decisions regarding Fairholme Capital’s stake in Sears Holdings.

Company Chairman and CEO Edward Lampert thanked Berkowitz for his service, characterizing the investor’s leadership, guidance and counsel as “invaluable.” In a statement, Berkowitz said he wished the company the best as it “continues to execute on its strategic priorities.”

Like many major U.S. retailers, Sears Holdings is trying to cope with a financial shift as consumers do more of their purchasing online and away from brick-andmortar stores. The company said in August it would close another 28 Kmart locations in a continuing cost-cutting campaign. The closures expand a list of 330 Sears or Kmart stores shuttered or set to be closed this year as the retailer seeks financial stability. Sears Holdings said in a filing earlier this year it believed it had at least another 12 months of cash to continue its operations.