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article imageSears Canada names new acting-CEO

By Nicole Weddington     Oct 20, 2014 in Business
Sears Canada Inc. named Ronald Boire of the American-based Sears Holding to replace Douglas Campbell as acting president and CEO. This is not the first time that the Canadian-based company has recruited from its American partner.
Boire, a long time veteran with Sears Holding has been executive vice-president, chief merchandising officer (CMO) and president of Sears and Kmart Formats since 2012. He worked at Sony Electronics for 17 years before moving to Best Buy where he served as global merchandise manager between 2003 and 2006. After that, he served as president of both Brookstone and Toys R Us.
He replaces Campbell, who also served at Sears Holding. Campbell held his position with Sears Canada for one year before announcing his departure for family reasons. Shortly after the store announced it would be allowing people to enter a Sears coupon code on its site to obtain disocuunts.
The announcement came at the same time as Reuters announced that Sears Holding is divesting itself of its stake in Sears Canada from 12 percent to 51 percent. The company hopes that it will raise as much as $380 million through the rights offering.
“This rights offering provides Sears Holdings with additional long-term flexibility and we expect it will provide confidence to our vendors and other constituents that we will continue to generate the liquidity needed to support our business,” the company said in a blog post Monday.
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This announcement comes after the company’s losses approached $1 billion during the first part of this year.
According to the Wall Street Journal, Chief Executive Edward Lampert has provided the ailing company with cash infusions in September when his hedge fund invested $400 million backed with 25 of the retail stores properties and then an additional $169 million in mid-October when he bought part of the 51 percent share of Sears Canada that Sears Holding owned.
These short-term cash infusions have led to many of Sears’ vendors to question the liquidity of the company.
“This is their second initiative to raise money for the holiday season, which really makes you question - what are they hearing from suppliers?” Brian Sozzi, Chief Executive of Belus Capital Advisors told Reuters. “Are they (Sears) starting to get concerned if they can get shipments post-holiday season?”
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