Hoffman Estates, Ill.-based Sears Holdings Corp. said it plans to spin off its interest in Orchard Supply Hardware Stores, an 89-store chain that operates in California.

Orchard Supply Hardware -- also known as OSH -- recently named Mark Baker, a former top merchant at The Home Depot, as its CEO. OSH is based in San Jose and posted $660.7 million in sales in 2010, with a profit of $8.7 million.