Kmart sears and esl vornado

Tweet on Twitter This week Sears announced that they will file for bankruptcy and close stores, continuing the trend of brick and mortar retailers falling victim to Amazon and Walmart. Another thing these retailers have in common is that are owned by huge private equity firms and hedge funds that have badly mismanaged them. Most of these companies surrendered to bankruptcy after being overloaded with debt, and it seems that even the smartest minds on Wall Street were unable to save them.

Kmart sears and esl vornado

In terms of the structure, we set up an Office of the Chairman, which will be led by me as Chairman of the Board, and Alan Lacy will be part of the Office of the Chairman. I think is important to note that we have committed to working in partnership.

This is going to be an enormous undertaking.

Kmart sears and esl vornado

We are going to need really the best of us, but the best of both the Kmart team as well as the Sears team. I think that there is going to be a lot of work to do in converting Kmart stores into Sears stores where appropriate, bringing Sears products into Kmart stores.

We want to make sure that everybody stays focused on running the stores and stays focused on the customers. We are really not looking to have 2 separate cultures. While we will be operating the stores under 2 different nameplates, the cultures we would like to be as similar as possible.

This is not something that happens overnight, but we really want it to be very much customer focused and store focused. In terms of corporate governance, the new Board of Directors will consist of 10 members, including the 3 of us, and 7 of the members of the Board will be drawn from existing Kmart board members and 3 will be drawn from existing Sears board members, and that again includes the 3 of us.

And given the large ownership that we will have on the Board, we will be able, similar to what Kmart has been able to do for the last couple of years, we will be able to manage the business strategically and for the long-term without having to worry about figuring out how to make monthly same-store sales, hit a specific target, and without giving any type of quarterly earnings guidance and then trying to manage the business to that guidance.

We understand the potential for the combination. In terms of the strategic perspective behind the merger, I think it is pretty obvious that scale is very important to compete effectively. You saw a significant combination in the early to mids which continues today in the financial services industry.

Kmart, Sears Joining Forces - CBS News

You had the opportunity to continue to service the customer base with products and services, while driving significant efficiencies and productivity out of the back office.

And I think that while we need to have a low-cost structure, it needs to be consistent with the reputation and quality of service that Sears has always provided and the type of service that we at Kmart aspire to achieve. Clearly, the Kmart locations are very significant, off-the-mall locations in high-traffic areas.

Sears has the best offerings. The issue for Sears, however, has been with competitors opening hundreds of stores a year, the ability to actually be closer to the customer if something that Sears has started to move towards with the launching of the Sears Grand stores. The other factor with competitors opening so many stores and Sears not having been opening stores off the mall is Sears has had to spend a significant amount of money, both in marketing and capital expenditures, just to stay even.

This has been something that has been talked about. It has been talked about before the Company went into bankruptcy, when it was in bankruptcy and since it has emerged.

And I think that the ability to access that will make an existing Kmart location with those products be a lot more competitive.

This is not in terms of any type of guidance, but for perspective purposes. And I think that the ability to sort of work together to really get best practices from both organizations and work with our supplier base to really help drive their business and help them save money, so that we can save money for our customers, is a big opportunity.And just like Toys R Us vainly hoped last year, Lampert announced Sears Holdings looks to the holiday retail season to turn things around, but Kmart and Sears locations will .

ESL Investments and its affiliates, which are controlled by Mr. Lampert, have agreed to vote all Kmart and Sears, Roebuck shares they own in favor of the merger and to elect stock in the transaction with respect to their shares of Sears, Roebuck.

"Kmart and Sears have been out-maneuvered by Wal-Mart. holding a 15 percent stake in Sears through his ESL Investments Inc. a similar real estate strategy after the disclosure that Vornado.

Within 18 months of exiting bankruptcy, Kmart's position was sufficiently strong to launch an acquisition of Sears, once the nation's largest retailer and also a core holding of ESL.

Looks at a number of compelling issues related to Kmart's bankruptcy, restructuring, and rebirth under the control of ESL, a large hedge fund. Presents some of the key metrics that Eddie Lampert, head of ESL.

Over the past year, Kmart has been trying to sell more branded products, while Sears has been adding more soft goods to its stores, which will help make the cultural fusion a little easier Karatash & Rittberg - 10 - 11/19/ Equity Research Regarding inventory, Kmart and Sears have not made any moves toward matching Wal-Mart’s steady.

Nov 17,  · Kmart chairman Lampert will be the chairman of Sears Holdings, while Sears CEO Alan Lacy will be vice chairman and CEO of the new company.

The new member Sears .

kmart | Blind Bat News | Page 14