Investor Group Sells Kmart Canada to Hudson’s Bay Company

FORT LAUDERDALE, FL — FEBRUARY 1998 – Synergy Enterprises, LLC, a firm specializing in restoring distressed and underperforming companies to profitability and positive cash flow, along with its partners Capital D’Amerique CDPQ Inc. (a wholly-owned subsidiary of Caisse de depot et placement du Quebec) and Cherokee Ventures Canada Inc., has sold Kmart Canada Company to Canada’s Hudson’s Bay Company.  Hudson’s Bay, Canada’s largest retailer, will merge its 298 Zellers discount stores with Kmart Canada’s 122 location.  George Heller, formerly President and CEO of Kmart Canada, was appointed president and CEO of Zeller’s

Gary Nacht, Chairman and CEO of Synergy Enterprises, led the sale negotiations. “This acquisition eliminates Hudson’s Bay’s smaller discount rival while adding a presence in 17 new markets” Mr. Nacht stated. “It will serve an important strategic role in helping Hudson’s Bay compete with its primary competitor, Wal-Mart Stores. Inc.” he added.

As part of the negotiations, the investor group retained ownership of nearly one million square feet of office and warehouse space at Kmart Canada’s home office operations under a long-term lease with Hudson’s Bay.

About Synergy Enterprises
Synergy Enterprises, LLC is a Fort Lauderdale-based firm owned by Gary Nacht, its Chairman and CEO. Founded in 1995, Synergy has been acquiring and advising distressed and underperforming companies for over 20 years across a wide diversity of industries, including Kmart Canada, Northern Reflections, Gemini Industries, DPI International and AmerTac Inc.  Recently, Synergy launched its Quick Strike Advisory Service to help companies experiencing operating losses achieve short-term recovery.