Sears Holdings Corporation announced that Bruce Berkowitz is stepping down from the company's board of directors, effective Oct. 31. Berkowitz joined the board in February 2016.
Berkowitz is Sears Holdings’ largest shareholder with his mutual fund — Fairholme Capital Management — owning a 27% stake in the company. Shares of SHLD subsequently dropped more than 10 percent during trading on Monday.
"On behalf of the board of directors and management, I want to thank Bruce for his long-term commitment and investment in Sears Holdings. His leadership, guidance and counsel as a board member have been invaluable to our company," Edward Lampert, chairman and CEO of Sears Holdings, said in a press release issued by Sears Holdings.
"It has been a pleasure to serve on the board of Sears Holdings and work closely with Eddie and the rest of the leadership team,” Berkowitz said. “I wish the company and its associates all the best as Sears Holdings continues to execute on its strategic priorities."
Berkowitz serves as the chief investment officer of Fairholme Capital Management LLC and is the president and a board member of Fairholme Funds.