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 EventsItem 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.