Sears brings restructuring expert on board

 

Sears Holdings Corporation has appointed Alan Carr, managing member and CEO of Drivetrain, LLC, to its board of directors.

According to Sears Holdings – the owner of Sears and Kmart stores – Carr has significant experience as a principal, investor and advisor leading complex financial restructurings, as well as serving as a director of reorganized businesses in the U.S. and Europe. Drivetrain specializes in financial restructuring.

Carr was previously an attorney at Skadden, Arps, Slate, Meagher & Flom LLP and Ravin, Sarasohn, Baumgarten, Fisch & Rosen.

"Alan brings deep experience as a director for companies that went through complex organizational change,” said Edward Lampert, chairman and CEO of Sears Holdings. “We are pleased to welcome him to the board and look forward to the benefit of his expertise as we work to maximize value for the company and its stakeholders."

With a big debt payment coming due, Lampert – also the chairman, CEO and biggest shareholder and creditor of Sears Holdings Corp – has made a big push to save the beleaguered company from filing for Chapter 11 bankruptcy protection.

ESL Investments, the hedge fund run by Lampert, has come up with a plan that would essentially translate into a wholesale financial restructuring of the company but without a Chapter 11 filing. It would significantly reduce the struggling retailer’s $5.6 billion debt load, cutting it by nearly 80%. The plan, outlined in a securities filing made by ESL on September 24, include selling off many of Sears’ remaining stores and asking lenders to exchange their loans for equity stakes in the retailer.