Home / Business / Lampert completes the acquisition of Sears; chain for performing CEO search | Chain Store Age

Lampert completes the acquisition of Sears; chain for performing CEO search | Chain Store Age



FINANCE

It's official: ESL Investments, the hedge fund run by Sears Holdings Corps Chairman Eddie Lampert, has completed its acquisition of the bankruptcy company for approximately $ 5.2 billion. [19659004] Last week, a bankruptcy judge approved ESL's offer, which cleared the way for Sears to go bankrupt and continue to operate as an ongoing business. After the ongoing (and previously announced) closing of the stores, the new Sears will consist of 223 Sears and 202 Kmart stores, along with such brands and businesses as Kenmore, DieHard, Craftsman, Sears Home Services, Sears Auto Centers and Innovel.

The company will be led by the same management team that constituted the Chief Executive Officer of Sears Holdings, consisting of Robert A. Riecker, CFO; Leena Munjal, chief digital officer; and Greg Ladley, president, softlines. (The office was taken when Lampert went down as CEO.) Sears said it intends to seek an executive with a record of success "to manage platform companies and carry out large dynamic conversions."

"The best possible result has now been achieved for all stakeholders, including Sears' many employees, Shop Your Way members, salespeople and other partners," said Lampert, CEO of ESL. era at Sears and Kmart based on their proud stories, while finding new ways to innovate and grow to adapt to the forces that transform the retail trade. We are ready for this exciting opportunity to help Sears restore profitability and apply us every day in pursuit of that goal. "

A new entity, Transform Holdco, will be the holding company for the rescued chain and retain all existing customer experience and agreements intact for a" seamless transition, "the statement said. After the acquisition, the new Sears had more than $ 400 million in excess of the supply of the new asset remuneration credit facility, which provides a significant runway to pay assumed debts and carry forward forwarding initiatives, including investments in new, smaller stores to expand their range in the hard disk category.

In a statement, the company advances from the process of chapter 1

1 that is placed for success with:

• A footprint of profitable stores, a robust digital platform and an integrated ecosystem for companies running franchise value
• A healthier capital structure, including a reduced debt burden that creates it liquidity that is necessary to invest in its advancement Plan
• Initiatives to drive the margin and EBITDA growth, including technology investments, stock optimization and Sears Home Services improvements,
• Significant reduction in SG&A costs,
• Strong brand recognition and market position are key segments, appliances
no. 3 device traders in the US,
• no. 1 home care and direct service provider, including leading third-party merchants; and
• No. 1 supplier of appliances and lawn and garden parts to the DIY community.


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