– New President and CEO Appointed –
FORT LAUDERDALE, FL — JUNE 1997 – Synergy Enterprises, LLC, a firm specializing in restoring distressed and underperforming companies to profitability and positive cash flow, in partnership with Capital D’Amerique CDPQ Inc. (a wholly-owned subsidiary of Caisse de depot et placement du Quebec) and Cherokee Ventures Canada Inc., has acquired Kmart Canada Company from Kmart Corporation. George Heller, former president of Bata Industries North America and Europe, was appointed president and CEO by the new owners.
Mr. Nacht, Chairman and CEO of Synergy Enterprises, led the negotiations and was instrumental in obtaining a new $135 million revolving line of credit from Congress Financial to support the business.
“We are committed to rebuilding Kmart Canada into a strong, national retail business,” said Heller, who brought to Kmart Canada more than 25 years of experience in retail management. “Our goal is to create a profitable business through customer service, the support of our associates, strengthened information and technology systems and investment in Kmart Canada’s presence and vitality,” Heller added.
Kmart Corporation Chairman, President and CEO Floyd Hall, said the sale “is in keeping with our commitment to focus on our core U.S.-based operations and continue improving our overall financial performance. We appreciate the support of our Canadian customers, vendors and associates, and believe that the investor group will create a strong Canadian-owned business that will be competitive and profitable.”
Kmart currently operates 123 stores across Canada and employs about 12,600 full- and part-time employees. With 1996 annual sales of more than $1.1 billion (Cdn.), it is the third largest discount retailer in Canada.
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.