87 176
Fashion Jobs
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · CLERMONT
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · DACULA
KOHLS
Technical Project Manager, Remote
Permanent · MENOMONEE FALLS
NAVY EXCHANGE
Vending Operations Clerk PT
Permanent · FALLON
NAVY EXCHANGE
Director, Facility Design %26 Construction
Permanent · VIRGINIA BEACH
NAVY EXCHANGE
Buyer (Level i And Level II) - Various Categories
Permanent · VIRGINIA BEACH
SPECIALIZED
Brand Development Manager - Michigan
Permanent · LANSING
ECCO
Third Keyholder
Permanent · ELIZABETH
ECCO
Third Keyholder
Permanent · LAS VEGAS
ECCO
Sales Manager - National Accounts (Remote)
Permanent · LONDONDERRY
ECCO
Third Keyholder
Permanent · ROSEMONT
LULULEMON
Community Specialist | Summit, Springfield Ave
Permanent · SUMMIT
LULULEMON
Expeditor | Cherry Creek
Permanent · DENVER
LULULEMON
Community Specialist | Friendly Center
Permanent · GREENSBORO
NORDSTROM
Customer Service Representative - Hillsdale Shopping Center
Permanent · SAN MATEO
NORDSTROM
Retail Stock - Mercer Mall Rack
Permanent · LAWRENCE TOWNSHIP
NORDSTROM
Manager- Service Experience- Baton Rouge Mall Rack
Permanent · BATON ROUGE
NORDSTROM
Retail Stock - Sugar House Rack
Permanent · SALT LAKE CITY
NORDSTROM
Asset Protection - Agent - Aventura
Permanent · AVENTURA
NORDSTROM
Retail Stock - Northwoods Rack
Permanent · SAN ANTONIO
NEIMAN MARCUS
Business Manager Tom Ford, Beauty (PT, 35 Hours) - FT. Worth
Permanent · FORT WORTH
NEIMAN MARCUS
Sales Manager, Designer Rtw
Permanent · CORAL GABLES
By
Reuters
Published
Oct 16, 2017
Reading time
3 minutes
Download
Download the article
Print
Text size

Top investment advisor Bruce Berkowitz resigns from Sears Holdings Board

By
Reuters
Published
Oct 16, 2017

Sears Holdings Corp on Monday said that Bruce Berkowitz, head of the company’s second-biggest investor, resigned from the board of directors less than two years after he sought a seat to help turn the struggling department store chain around, sending Sears stock down as much as 15 percent.




The decision by Berkowitz, the head of investor fund Fairholme Capital Management, was not the result of a disagreement over operations, policy or practices, Sears said in a statement.

A fund managed by Fairholme Capital Management disposed of 3.14 million Sears shares on Oct. 12, according to a regulatory filing. As part of a previously approved plan of liquidation, the fund distributed the stock to the fund’s investors, including 727,816 shares of Sears stock to Berkowitz.

The fund in liquidation, which a person familiar with Fairholme identified as Fairholme Partnership LP, also distributed warrants to buy Sears stock.

Like many U.S. retailers, Sears has been losing customers to online competition such as Amazon.com Inc and to discounters such as Wal-Mart Stores Inc.

Hoffman Estates, Illinois-based Sears has been closing scores of its weaker Kmart and namesake department stores, striking brand licensing deals and promoting its shopper loyalty program in efforts to turn itself around.

Sears named Berkowitz to its board in February 2016, expanding the number of directors to 10, after Berkowitz said he wanted an active role in returning Sears to profitability. He also said he wanted greater disclosure of assets and strategy.

“Mr. Berkowitz believes that he has achieved that objective, and was pleased to have the opportunity to provide input during the formulation of the company’s strategic restructuring program,” Fairholme said in a statement.

Fairholme said the firm remains a significant investor in Sears. As of June 30, Fairholme owned 26.9 percent of Sears stock, according to Thomson Reuters data, and only company Chairman Eddie Lampert himself holds a bigger stake.

Sears said Lampert appreciated Berkowitz’s board tenure. “Mr. Lampert and Mr. Berkowitz have a long-standing partnership and continue to have great respect for each other,” said spokesman Howard Riefs of Sears.

Sears announced last February a plan to cut costs by $1 billion and reduce debt and pension obligations. Its stock more than doubled in the months following the turnaround plan, and in May Sears reported its first quarterly profit in two years.

The gains in the share price, however, have eroded since summer. On Monday afternoon Sears shares were down about 10.7 percent at $6.04 on Nasdaq, as the stock posted it biggest one-day drop in more than three years, according to Thomson Reuters data. Earlier on Monday, the shares were just 25 cents above the record low price set in February.

On an analyst call in June, Berkowitz said Sears was worth $90 per share based on its real estate and brands, but operating losses were undermining that value.

He said on the call he continued to invest in Sears because the stock was falling faster than the net value of Sears’ assets. Fairholme had invested 9.7 percent of its net assets in Sears, according to a May 31 securities filing.



 

© Thomson Reuters 2024 All rights reserved.