This story has been shared 4,304 times. Approximately 100 employees have been laid off. Private equity investors typically run their companies for five to seven years before taking profits and exiting the investment. After the petition is filed, the U.S. Department of Labor will determine whether a significant number or proportion of the workers of the firm have become totally or partially separated or are threatened to become totally or partially separated, and whether imports or a shift in production or services to a foreign country contributed importantly to these actual or threatened separations and to a decline in sales or in production of articles or supply of services. Change is coming. Staples looks like it may be next to experience those very particular skills. They lost BILLIONS. 4,304, This story has been shared 2,140 times. No further details about what jobs were eliminated were immediately available Monday afternoon. paperwork submitted to the U.S. Department of Labor, (c) 2004 - 2020 by Stephen Richard Levine - All Rights Reserved. 2,140, This story has been shared 1,813 times. Policies: Curation, Terms of Use, Privacy Policy & Disclaimer. Zero. “Sycamore Partners has a history of stripping assets from retailers, leading to store closures and layoffs at retailers like Nine West and Aeropostale,” according to the letter, which represents United for Respect’s Wall Street accountability committee. After its acquisition on September 12, 2017, by New York-based Sycamore Partners for $6.9 billion, multinational office supplies retailer Staples, based in Framingham, Massachusetts, laid off 177 workers, said to be mostly IT employees. AND UTTER. Relatively speaking, the company also fared well. It will make annual coupon payments of almost 11% to buyers of the unsecured bonds, while the senior debt yields around 8%. Recharacterization is another equitable remedy that, if satisfied and granted by the court, would have resulted in Sycamore’s $150mm secured term loan position being reclassified as equity. Click here to read the Mint ePaperMint is now on Telegram. Election Day Freebies! When in doubt, change the code. This one had the added drama of arch enemies Kirkland & Ellis LLP (Sycamore) and Weil Gotshal & Manges LLP (Aeropostale) duking it out to the ego-extreme. The other bids came from Saks Fifth Avenue owner Hudson’s Bay Company for $1.7 billion and from mall operators Simon Property and Brookfield Property for $1.650 billion. Today a Trump rally a couple miles south of us was retweeted by Dan Bongino, The information was reported to us at approximately 9:20pm that there was a reports of. Anyway, there was a trial with fourteen testifying witnesses over eight presumably PAINFUL days that, in a nutshell, went like this: WEIL GOTSHAL: “Sycamore are a bunch of conspiratorial PE scumbags who ran this company into the ground, your Honor!”, JUDGE LANE: “Not credible. But what was the end result? Zip. Sycamore Partners is looking to take most of its cash out of Staples Inc. through a recapitalization that will saddle the company with roughly $1 billion of additional debt, — Carol Forden (@CarolForden) March 25, 2019 “Sycamore has constantly raised lenders’ eyebrows with their actions at Staples," said John McClain, a portfolio manager at Diamond Hill Capital Management who bought some of the company’s buyout debt but declined to participate in the new offering. Belk has been making other changes to its operations in the Charlotte area. In the end, Sycamore fared pretty well. A team of banks led by Goldman Sachs Group Inc. and UBS Group AG persuaded investors to buy the debt anyway—but Staples had to pay up. “These changes will help simplify corporate operations, more efficiently align teams and position Belk to continue to grow” seamless customer experiences in stores, on apps and online, the company stated. Weil has, to date, also avoided having a chapter 22 and liquidation in its stable of quals so there’s that too. Sycamore Partners should not be allowed to buy JCPenney out of bankruptcy because of its long history of closing stores and decimating jobs, a worker advocacy group said Tuesday. We’ll discuss that and the (impressively) savage tactics deployed by Sycamore Partners therein in Part II, coming soon to an email inbox near you. Here is Sycamore placing a leveraged anchor on…uh…improving “the strategic value” of Staples: This is the market reacting to Sycamore’s strategy for Staples: If the above GIF looks familiar, that’s because this is like the Taken series: Sycamore has a very particular set of skills. A Gray Media Group, Inc. Station - © 2002-2020 Gray Television, Inc. Catherine Muccigrosso | The Charlotte Observer, February 17, 2020 at 2:08 PM EST - Updated February 17 at 2:08 PM. You are now subscribed to our newsletters. The company laid off dozens of employees at its headquarters off Tyvola Road and other store, the Observer previously reported. Sorry, your blog cannot share posts by email. ***** The extent of the loss is just a matter of degree. Send Feedback to The company refuses to comment, releasing only a terse statement. The retailer also closed stores in West Virginia and Atlanta, the Observer reported at the time. Instead, Belk said it was instead investing in other “new giving initiatives that will have a greater impact on our hometowns.”. Staples will be one of the next retail chains to disappear. That kind of financial engineering had seemed to be the playbook after Sycamore bought Staples at a valuation of $6.9 billion, its biggest takeover ever. It appears that Staples is consolidating its distribution operations and moving from Henderson, North Carolina to its enlarged distribution center in Charlotte, North Carolina. Just kidding: this was all about justice! In case you can’t find any email from our side, please check the spam folder. . We will just have to watch and wait. 400 stores across the US are slated to close in 2020, and sites with expiring leases are not renewing them. Plano, Texas-based JCPenney filed for Chapter 11 bankruptcy protection on May 15 with 850 stores. Sycamore has pulled off a $5.4 billion refinancing of Staples, which it bought in 2017, that funded a staggering $1 billion dividend to the private equity firm, Sycamore has now recovered—in less than two years—roughly 80% of the equity it originally put up as part of the deal. “These changes have been difficult but are necessary to provide the best customer experience possible.”. Good day, sir. After its acquisition on September 12, 2017, by New York-based Sycamore Partners for $6.9 billion, multinational office supplies retailer Staples, based in Framingham, Massachusetts, laid off 177 workers, said to be mostly IT employees. Sycamore Partners today announced that it has closed its second fund, Sycamore Partners II, L.P., with limited partner commitments of $2.5 billion. F*ck all, that’s what. (emphasis added). And here’s how that ended: The sequel was Nine West and this is how that ended: And, well, you get the point. However, when done correctly, it can add layers of expertise, release you from tedious chores and let you concentrate on running your business more effectively.”. Sycamore also sold over 300 Dollar Express stores to rival, Dollar General. We've received your submission. Just because something bad hasn't happened yet, doesn't mean it won't. This is a big deal.