It's official: ESL Investments, the hedge fund managed by Sears Holdings Corp., president Eddie Lampert, has completed the acquisition of the company bankruptcy for about $ 5.2 billion.  Last week, a bankruptcy court judge approved ESL's offer, paving the way for Sears to get out of bankruptcy and stay in business as a going concern. Following its ongoing closure cycle (and previously announced), the new Sears will consist of 223 Sears and 202 Kmart stores, along with brands and businesses like Kenmore, DieHard, Craftsman, Sears Home Services, Sears Auto Centers and Innovel .
The company will be led by the same management team as the "Office of the Chief Executive" of Sears Holdings, composed of Robert A. Riecker, CFO; Leena Munjal, chief digital officer; and Greg Ladley, president, softlines. (The office was put in place when Lampert resigned from the CEO.). Sears said he intends to conduct a search for a CEO with a record of success "in managing platform activities and performing large-scale dynamic transformations."
"The best possible result has now been achieved for all stakeholders, including many Sears Associates, members of Shop Your Way, suppliers and other partners," Lampert, CEO of ESL, said in a statement. "ESL is looking forward to a new era at Sears and Kmart based on their proud stories, while finding new ways to innovate and grow to fit the forces that are transforming the retail industry." We are ready for this exciting opportunity to help make profitable Sears and we will apply every day looking for this goal. "
A new entity, Transform Holdco, will be the holding company for the rescued chain and will keep all existing customers experience and agreements intact for a" seamless transition " , says the statement. As of the closing of the acquisition, the new Sears had over $ 400 million in excess of availability on its new asset-backed credit line, which provides a significant footbridge to pay for presumed liabilities and execute future initiatives, including investments in new, smaller ones
In a statement, the company moves forward from the Chapter 1
• An impression of profitable retail stores, a strong digital platform and an integrated ecosystem of businesses that promote the value of franchising
• A healthier capital structure, including a reduced debt load, which creates the liquidity needed to invest in its advancement plan;
• Initiatives to generate margin growth and EBITDA, including technology investments, inventory optimization and improvements to Sears home services
• Significant reduction in SG & A expenses;
• Strong brand recognition and market position s in key segments, home appliances;
• N ° 3 appliance dealer in the United States;
• N. 1 home care service and supplier of direct delivery, also for the main third-party retailers; and
• No. 1 supplier of home appliances and garden and lawn parts for the DIY community.