KMART SOLD, NEW PRESIDENT APPOINTED
By Adnews Staff
After much speculation, troubled retailer Kmart Canada of Brampton, Ont., has new owners and a new chief. U.S.-based Kmart Corp. sold its Canadian subsidiary this week to an investor group consisting of York Management Services, Capital d'Amerique CDPQ Inc. and Cherokee Ventures Canada. The price tag on the sale was $185 million(Cdn), with Kmart retaining a 12.5% equity interest in the company. George Heller replaces Mike Lynch as president and CEO of Kmart Canada. Previously he was Bata Industries president for North America and Europe. Lynch has returned to the U.S. operation. Kmart Corp. chairman, president and CEO Floyd Hall says in a release that "the sale is in keeping with our commitment to focus on our core U.S.-based operations and continue improving our overall financial performance." Kmart Canada is a discount retailer operating 123 outlets across Canada. The chain ranks third in the market, behind Wal-Mart Canada and Zellers. Advertising for Kmart is done in-house.