It's official: ESL Investments, the hedge fund of Sears Holdings Corp. Chairman Eddie Lampert, has completed the bankruptcy acquisition for approximately $ 5.2 billion.
] Last week, a bankruptcy court judge approved ESL's offer and paved the way for Sears to terminate the bankruptcy and continue the business. Following the ongoing (and previously announced) closure of stores, the new Sears will consist of 223 Sears and 202 Kmart stores as well as brands and operating companies such as Kenmore, DieHard, Craftsman, Sears Home Services, Sears Auto Centers and more.
The company is led by the same management team that formed the "Chief Executive" office of Sears Holdings, consisting of Robert A. Riecker, CFO; Leena Munjal, Chief Digital Officer; and Greg Ladley, President, Softlines. (The office was set up when Lampert resigned as CEO.) Sears intends to conduct a search for a CEO who has been proven successful in "managing platform operations and performing large-scale dynamic transformations."
"The best possible result has now been achieved for everyone involved, including the many from Sears employees, Shop Your Way members, vendors, and other partners," said Lampert, CEO of ESL, in a statement. "ESL is pleased A new era for Sears and Kmart that builds on its proud history while finding new ways for innovation and growth to adapt to the forces that are transforming retail, we are ready for this exciting opportunity to bring Sears back into the business Profit zone every day and will work hard to achieve that goal. "
A new entity, Transform Holdco, will be the salvaged chain holding company and retain all existing customers. The experience and agreements are for a" seamless transition "Intact After the acquisition was completed, the new Sears had surplus availability in excess of $ 400 million r for its new asset-backed lending facility, which represents a significant launch pad for the payment of assumed liabilities and the implementation of forward initiatives, including investments in new, smaller, branches expanding its reach in the Hardlines category.
In a statement, the company anticipates the success-oriented Chapter 1
• A presence of profitable retail stores, a robust digital platform, and an integrated platform ecosystem of companies that increase franchise value;
• A healthier capital structure, including a reduced debt burden, that creates the necessary liquidity to invest in its estimates;
• Initiatives to increase margin and EBITDA growth, including technology investment, inventory optimization, and improvements to Sears Home Services
• Significantly reduced SG & A costs
• Strong brand awareness and market position in key segments, devices;
• # 3 appliance retailer in the US;
• No. 1 for home service and direct deliveries, also for leading third-party dealers; and
• No. 1 supplier of equipment and lawn and garden parts for the DIY market community