Hedge fund honcho Edward Lampert is playing an old tune for Sears: break up to make up.

Make up for the beating that Lampert’s portfolio has taken on the retail giant he forged out of the merger of Sears and Kmart, that is.

The restructuring would involve breaking the company into several different units that would oversee the company’s real estate holdings, as well as specific featured brands such as Kenmore and Craftsman, according to news reports.

Lampert may also be considering a spin-off of one or more of those units, reports said.

Sears Holdings, the holding company for the Sears empire, posted a third-quarter profits drop of 99%. The company has already warned that it expects its fourth quarter to come in 57% below the same time last year.

Sears is viewed by analysts as a company whose merchandising abilities is stuck in the past, leaving it vulnerable to intense competition from rivals.

Lampert, whose hedge fund firm ESL has about a 48% stake in Sears, has watched the company’s share value drop about 50% over the last year.

A phone call to Sears Holdings from HedgeFund.net seeking comment was not returned by press time.