Craftsmen and Kenmore make money.
Everything loses money.
They should reduce their store footprints by 2/3 and sell tools and appliances.
They should do the above, and convert the rest of their business to an ‘online Sears catalog’ business, as suggested above. Yes, they would be into this waaayyy late, but they have a name to sell, and could potentially make it work.
There is a Sears outlet store in Boise that pretty much does exactly that. The tools they sell are are CCJ (Cheap Chinese Junk), though. If that's what I'm looking for, I'll go to Harbor Freight.