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Transform Holdco LLC (referred to as "New Sears") is an American privately held company formed on February 11, 2019, to acquire the assets of Sears Holdings Corporation. The new company is owned by Edward Lampert's ESL Investments hedge fund of Greenwich, CT. Following the Chapter 11 bankruptcy filing of Sears Holdings on October 15, 2018, Transform Holdco LLC purchased substantially all of the assets owned by Sears Holdings for $5.2 billion.[4]

Transform Holdco LLC.
Private
IndustryRetail
Genre
FoundedFebruary 11, 2019; 7 months ago (February 11, 2019)[1]
FounderEddie Lampert
Headquarters,
Number of locations
424[2]
291 (by the end of 2019)
Areas served
  • United States
  • Puerto Rico
  • Guam
Key people
  • Eddie Lampert (chairman)
  • Leena Munjal (Chief Digital Officer)
  • Greg Ladley (President of Apparel and Footwear)
  • Robert A. Riecker (Chief Financial Officer)
OwnerESL Investments
Number of employees
45,000 (2019)[3]
Subsidiaries

On June 3, 2019, it was announced that Transform Holdco LLC will acquire Sears Hometown and Outlet Stores. As per deal, they might need to divest its Sears Outlet division to gain approval.[5]

On August 6, 2019 it was announced that Transform will be closing 26 stores, including 5 Kmarts and 21 Sears stores, in October.[6] On August 31, 2019, It was announced that Transform would close an additional 92 stores, including 77 Kmarts and 15 Sears stores, by the end of 2019.[7]

SubsidiariesEdit

Kmart divisionEdit

  • Kmart – a chain of discount stores that are usually free-standing or located in strip malls. They carry most standard department store stock as well as a limited selection of grocery items.
  • KGRO – a brand of Kmart that is used exclusively in each store's Garden Shop. While in the past it covered such things as KGRO garden and power equipment, today it still stands as Kmart's brand of fertilizers and plant seeds.
  • K-Fresh – a new format that was implemented in several Super Kmart Center locations, which extended the grocery section into a store-within-a-store model.
  • mygofer – a hybrid-online retail concept launched in spring of 2009, where products are ordered ahead of time and then are either shipped to the customer or held at a local Kmart for the customer to pick up.

Sears divisionEdit

  • Sears – a chain of department stores that are usually located in shopping malls, with a few freestanding locations. These stores carry traditional, middle-class priced department store items as well as an expanded appliance and tools section. Many have downsized to one floor instead of two lately.
  • Sears Grand – a sub-chain of Sears stores, typically located away from shopping malls and arranged in a fashion similar to a big-box store. Many Sears Grand locations are retrofit remodels of existing Kmart or Sears stores in freestanding locations. They carry an expanded inventory, as compared with full-line Sears Department Stores, and can range from 165,000 to 210,000 square feet (15,300 to 19,500 m2).
  • Sears Home Services – a division of Sears that specializes in appliance repair, lawn and garden services, HVAC service, as well as most in home services. Sears Home Services can also do repair on small appliances in-store.
  • Sears PartsDirect – a chain of lawn-and-garden equipment and appliances parts stores. Some stores, branded as Sears Parts and Repair Centers, feature a carry-in point for customers to bring merchandise in that needs to be repaired either in- or out-of- warranty.
  • Sears Travel - an online travel agency that provides online and telephone-based booking services for Sears customers through the SearsVacations.com website.
  • Sears Home & Life - a chain of stores that sells "hardline" goods such as appliances, tools, mattresses and lawn and garden equipment. These stores are free standing and are between 10,000 and 15,000 square feet in size.
  • Sears Optical - is a licensed brand owned and operated by Luxottica. They provide Comprehensive Vision Exam, Pediatric Vision Exam, Contact Lenses (including astigmatism and bifocal contact lenses), Diagnostic and Medical Treatment of Eye Diseases, Urgent Care, Cataract and Glaucoma Surgery Consultation/referrals, Low Vision Treatment, Advanced Testing Instruments, Eyeglass Dispensary.
  • Sears Flowers - an online store that sells Flowers, Plants and gifts for same day delivery that is franchised to Teleflora.

Other subsidiariesEdit

  • DieHard Auto Center – launched in 2017, these full-service auto care centers are similar to Sears Auto Centers although they are not attached to Sears stores. Specialize in DieHard-branded auto products.[8]
  • Shop Your Way – a customer loyalty program shared between all subsidiaries.
  • A&E Factory Service – a joint venture held by Whirlpool and Transform Holdco LLC that performs mobile appliance repairs.
  • Wally Labs – a subsidiary created when Sears Holdings purchased the rights to WallyHome sensor technology from SNUPI Technologies in 2015.
  • Monark Premium Appliances – a nationwide distributor of home appliances.

LawsuitEdit

In March 2019, Sears Holdings sued Transform Holdco LLC for $57.5 million it says it is owed from the sale. Sears Holdings also says Transform owes it $41.3 million for credit card and cash transactions that occurred before the sale closed, as well as $16.2 million for a portion of February rent. A hearing on the matter was anticipated to take place on March 21, 2019, according to the court documents.[9]

ReferencesEdit

  1. ^ "ESL Investments Completes Acquisition of Sears Holdings' Assets". Business Wire. 11 February 2019.
  2. ^ "Sears' controversial ex-chairman closes deal to buy the company, keeping 425 stores open". USA TODAY.
  3. ^ Wilkins, Rebecca Choong (February 9, 2019). "Jobs, Jobs, Jobs: Why Lampert's Bid Won Contest for Sears". Bloomberg L.P. Retrieved July 2, 2019.
  4. ^ "ESL Investments Completes Acquisition of Sears Holdings' Assets". Business Wire. February 11, 2019.
  5. ^ "Sears Parent Co. Buying Sears Hometown And Outlet Stores". 2019-06-03. Retrieved 2019-07-07.
  6. ^ Tyko, Kelly (August 6, 2019). "Sears and Kmart store closings: 26 stores to close in October". USA Today. Retrieved August 7, 2019.
  7. ^ Tyko, Kelly (August 31, 2019). "Kmart, Sears store closings: More locations to shutter by end of 2019". USA Today. Retrieved August 31, 2019.
  8. ^ "Sears launches free-standing pilot DieHard Auto Center". Automotive News. February 21, 2017.
  9. ^ "'Old Sears' sues 'new Sears'". Retail Dive. Retrieved 2019-03-16.