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TORONTO — Sears Canada said on Thursday that president and chief executive officer Douglas Campbell will step down to tend to family issues in the United States.
Sears Canada said on Thursday that president and chief executive officer Douglas Campbell will step down to tend to family issues in the United States.
Campbell will remain on the job through year’s end, or until Sears hires a replacement, the company said.
The news of Campbell’s departure comes after an auction of a majority stake in the Canadian retailer failed to attract any acceptable bids in its latest round, eliminating a potential near-term cash infusion for parent Sears Holdings Corp., the New York Post reported on Monday.
Earlier this year Sears announced that it was exploring strategic alternatives for its 51% interest in Sears Canada, including a potential sale of Sears Holdings’ interest or Sears Canada as a whole.
Sears Canada officials continue to cooperate in that effort, company officials said today.
The Post reported that the failed auction of the 62-year-old Canadian chain early this month was a key reason that the corporate parent of Sears and Kmart was forced last week to take out an emergency $400 million loan as it prepares for the year-end holiday season.
The loan raised eyebrows because it was made by ESL Investments, the hedge fund controlled by Eddie Lampert, Sears’ largest shareholder and CEO of Sears Holdings. The hedge fund demanded 25 of Sears’ best store locations as collateral, the newspaper reported.
The loan provides Sears with enough cash to keep going for three months, according to Bloomberg News, which said Sears has racked up more than $6 billion in losses over four years and will need at least $4 billion in new capital in 2016 to remain viable.
Sears Canada Thursday reiterated its commitment to a strategy of maximizing total value by optimizing productivity, realizing value from desirable assets and creating a highly relevant retailer in Canada, with a focus on rural and suburban locations.
The company also said that at year’s end the board of Sears Canada will review the company’s cash position and evaluate how stores performed during the holidays to determine the company’s business prospects.
