Majors

Sears Chairman Completes $5.2 Billion Acquisition

MajorsFeb 14, 2019

Sears Chairman Completes $5.2 Billion Acquisition

Eddie Lampert’s multi-billion-dollar bid will keep more than 400 Sears and Kmart stores open.

About 425 Sears and Kmart stores will stay open after Chairman Eddie Lampert’s ESL Investments Inc. bought the company out of bankruptcy.

New York—In the latest chapter of the Sears saga, Chairman Eddie Lampert’s private equity firm ESL Investments Inc. has completed its acquisition of Sears Holdings’ assets, the company confirmed Monday.

The retail giant filed for Chapter 11 in October, but former CEO Lampert submitted a $4.4 billion bid for the company.

After the acceptance deadline for that bid passed without a word from Sears, ESL upped its bid to $5.2 billion, which was accepted.

As per the deal, more than 223 Sears and 202 Kmart stores will remain open, keeping around 50,000 workers employed.

“The best possible outcome has now been realized for all stakeholders, including Sears’ many associates, Shop Your Way members, vendors and other partners. ESL looks forward to a new era at Sears and Kmart that builds on their proud histories, while finding new ways to innovate and grow to adapt to the forces transforming the retail industry,” Lampert said.

Whether or not the iconic retailer will be able to regain traction remains to be seen, but Lampert said he plans to return Sears to profitability in fiscal 2019.

Currently, the role of CEO of Sears Holdings is shared among Chief Financial Officer Robert A. Riecker, Chief Digital Officer Leena Munjal and Softlines President Greg Ladley, but Sears is on the lookout for someone to fill the role.

Sears did not respond to a request for comment regarding the timeline for finding a new CEO.

Once a heavyweight in the retail space, Sears’ shrinking presence may give other department stores a leg up, according to Moody’s Investors Service.

“As Sears continues to shrink its footprint following its Chapter 11 filing, department stores in locations that overlap with Sears stores, such as Macy’s, J.C. Penney and Dillard’s, will have the opportunity to pick up new customers,” Christina Boni, a Moody’s VP-senior credit officer, said in a research note.

“Last year we saw a similar situation, with the bankruptcy of Bon-Ton positively affecting sales for Macy’s and Kohl’s.”

Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

EditorsMay 11, 2021
We Need to Change the Way We Talk About Lab-Grown Diamonds

As Pandora moves away from mined diamonds, here’s why the conversation needs to shift from personal preference to consumer education.

ColumnistsMay 11, 2021
The Smart Lab: Everything You Need to Know About Social Media Shopping

Smart Age Solutions’ Emmanuel Raheb touches on the social commerce opportunities available to help grow your business.

SourcingMay 11, 2021
Lucara Secures $220M in Financing to Take Mine Underground

The company has received credit-approved commitments from five financial institutions for the expansion of its Karowe Diamond Mine.

Brought to you by
How to Engage and Sell to Millennials

Millennials were once feared in the diamond industry, but now this younger generation has become today’s largest diamond buying demographic.

IndependentsMay 11, 2021
Halstead Announces Call for 2021 Grant Entries

The bead company awards cash and supplies annually to a new jewelry business.

Weekly QuizApr 29, 2021
This Week's Quiz
Test your knowledge of jewelry news from the week of May 3-7, 2021.
Take the Quiz
EditorsMay 10, 2021
GiGi Ferranti’s Graffiti-Inspired Collection Wows

The Brooklyn-based designer just took initial and heart pendants to a whole new level.

Events & AwardsMay 10, 2021
Register Now for AGA’s Virtual Conference Covering Diamonds

Its annual half-day event will be held on Thursday, June 3, from 11:30 a.m. to 2:00 p.m. EDT.

Brought to you by
A New Golden Age

Gold has had its share of ups and downs over the last 5 decades. Here’s why the metal is having another big comeback.

Events & AwardsMay 10, 2021
Diamonds Do Good Is Crowdsourcing a Special Design

The organization is asking designers to interpret growth, unity, and equality through jewelry.

×