Sears Garners $500M in Lands' End Spinoff, Names New Supply Chief
HOFFMAN ESTATES, Ill.-With the closing of its spinoff of the Lands' End business on April 4, Sears Holdings received gross proceeds of $500 million.
The proceeds consisted of a cash dividend paid by Land's End to a Sears Holdings subsidiary prior to its spinoff. In the deal, Sears Holdings distributed about 32 million shares of Lands' End common stock to holders of Sears Holdings common stock as of 5:30 p.m. on March 24, the record date. In addition, Lands' End entered into an asset-based, senior secured revolving credit facility which provides for maximum borrowings of about $175 million, along with a senior secured term loan facility of about $515 million--the latter of which enabled Lands' End to pay the $500 million dividend.
Lands' End stock, under the symbol LE, began trading yesterday on the Nasdaq Global Select Market. The stock opened the day at $30.46 a share and closed at $29.55 a share.
In other Sears Holdings news, William Hutchinson has been named senior vice president and president, supply chain.
In his new role, Hutchinson is responsible for all aspects of the company's supply chain, including distribution, transportation, customs compliance and global sourcing. He reports to the supply chain business unit's board of directors. He is succeeding Raj Penkar, who will retire from Sears Holdings on May 31 after heading the supply chain unit since 2011.
Before joining Sears Holdings, Hutchinson was vice president of global fulfillment and logistics for Dell Inc. Prior to that, he was vice president of logistics and supply chain for Best Buy. His career also includes executive positions with Rite Aid, Accenture, Commerx and Andersen Consulting.