SEARS HOMETOWN AND OUTLET STORES, INC. (NASDAQ:SHOS) Files An 8-K Other Events

SEARS HOMETOWN AND OUTLET STORES, INC. (NASDAQ:SHOS) Files An 8-K Other Events
Item 8.01 Other Events. Sears Hometown and Outlet Stores, Inc. (the “Company” or “we”) relies>on certain of Sears Holdings Corporation’s computer and communications hardware and software systems (such as the payment data system used by the Company and its dealers and franchisees) and related security systems through a Services Agreement to collect, process, and store a large amount of customer and other information, including financial information and sensitive personal information. On June 1, 2017 we learned from a Sears Holdings blog post that certain Kmart store payment data systems operated by Sears Holdings had been infected with a malicious code and that Kmart had removed the code, contained the event, and launched a full investigation working with leading third-party forensic experts to review Sears Holdings’s systems and secure the affected part of its network. The Sears Holdings news release stated that, “Based on the forensic investigation, NO PERSONAL identifying information (including names, addresses, social security numbers, and email addresses) was obtained by those criminally responsible. However, we believe certain credit card numbers have been compromised.” Also on June 1 the Company was advised by Sears Holdings that it had no reason to believe that the Company’s payment data systems provided by Sears Holdings were affected. The Company will continue to monitor the situation (including seeking additional information from Sears Holdings) and take appropriate actions as they become necessary. See the risk factor entitled, “If we do not maintain the security of our customer, associate and company information, we could damage our reputation, incur substantial additional costs and become subject to litigation.” that is included in “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended January 28, 2017.

Forward-Looking Statements
This Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based upon the current beliefs and expectations of the Company’s management. The forward-looking statements are subject to risks, uncertainties, and assumptions, many of which are beyond the Company’s control. Additional information concerning other factors is contained in the Company’s Annual Report on Form 10-K for the fiscal year ended January 28, 2017 and subsequent filings with the SEC. The Company intends the forward-looking statements to speak only as of when made and, except as required by law, the Company will not update or revise the forward-looking statements as more information becomes available.

About SEARS HOMETOWN AND OUTLET STORES, INC. (NASDAQ:SHOS)

Sears Hometown and Outlet Stores, Inc. is a national retailer primarily focused on selling home appliances, lawn and garden equipment, tools, and hardware. In addition to merchandise, the Company provides its customers with access to a suite of related services, including home delivery, installation, and extended-service plans. The Company operates through two segments: Sears Hometown and Hardware segment (Hometown) and Sears Outlet segment (Outlet). Its Hometown stores are designed to provide its customers with in-store and online access to selection of national brands of home appliances, lawn and garden equipment, tools, sporting goods, and household goods. Its Outlet stores are designed to provide in-store and online access to purchase outlet-value products across a range of merchandise categories, including home appliances, mattresses, apparel, sporting goods, lawn and garden equipment, tools, and other household goods, including furniture.

SEARS HOMETOWN AND OUTLET STORES, INC. (NASDAQ:SHOS) Recent Trading Information

SEARS HOMETOWN AND OUTLET STORES, INC. (NASDAQ:SHOS) closed its last trading session up +0.15 at 3.20 with 37,264 shares trading hands.

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