Winnipeg Free Press

Winnipeg Free Press (Newspaper) - September 21, 1999, Winnipeg, Manitoba Winnipeg free press business september 1999 Steve email b3 Deal includes vital could save jobs Sears finds a bargain at Eaton by Leah Janzen staff reporter t t Tith the Eaton liquidation Sale in full Sears Canada yesterday nabbed what May be the Best bargain eight the Eaton name and Trade Marks and All outstanding shares in a Deal Worth As much As its an acquisition that could save jobs and breathes new life into store locations such As Winnipeg vital were looking Forward to them fill ing that said Charlie Finno manager of vital adding he is Happy the Eaton Loca Tion will not stand dark and empty once the liquidation Sale wraps up later this Sears has a proven track record of there a Strong retailer and a great asset to Sears Canada will pay million in Cash plus million after it realizes accumulated Eaton tax Eaton has lost More than million since 1996 and some of those losses can be used by Sears Canada to lower the company future tax if the transaction would save up to Canadian retail expand Sears full line department store and provide the Opportunity to explore potential new sales channels to preserve and build upon the Fine heritage of the Eaton Brand in Sears said in a news Paul Sears Canadas chair Man and chief executive said in a statement the company intends to keep on As Many staff members already working at the store As pos we believe our offer is beneficial to All stakeholders and provides significantly More value than would the termination of Eaton he we plan to hire As Many of the dedicated and talented Eaton associates As possible to join the Sears staff members at the vital store were ordered not to speak to the Media about the but a clerk in the lingerie Section said yesterday she was keeping her fingers crossed for the future of the store and her we Haven been told she it sounds the jobs will still be shoppers at the store yesterday said just because there will be a new retailer in Eaton old space Doest necessarily mean they will give Sears their Lynsey said the two stores Are very different in the Quality of goods and services they Eaton always carried More Brand names and More Youthful she i just remember Sears being the place my mom did All her shopping when we were i dont know if ill be Here As much now that Eaton is but Shari pouring Over facts about Sears Canada Headquarters stores 110 stores across ownership controlled by Sears Roebuck the huge chicag based top executive chief executive Paul Walters has headed the company since businesses the company Sells a wide variety of merchandise through its department internet and catalogue order has Large standalone furniture and appliance stores and Sells Home and Auto repair growth record profits since the 1997 third recent results in company reported a profit of compared with million in the same 1998 revenues Rose per cent to while earnings per share grew to 38 cents from 28 cents last up Ruth free press with son Derek at Eaton vital store welcomes the Sears retail outlets and perhaps an educational institution Over the next year or i think its Likely a year or so from now Well see thee tons building lit up one floor at a Eaton chairman Brent Ballantyne said the retailers Board is extremely pleased to have approved the agreement with particularly As it will result in the continued employment of a number of Eaton employees in the continuing stores and an enhanced return to according to the Sears will take Over the Eaton name and Trade Marks along with eight plus options on another five the stores will operate under the Sears the Deal is conditional on Eaton completing its plan to wind Down operations under the Federal Compa Nies creditors arrangement Eaton assets and liabilities not being acquired by Sears would be transferred to a new which will negotiate with other potential buyers on some of the remaining Eaton the whole arrangement requires approval from the shareholders and but Sears said it expects to close the transaction by year with files from Canadian press Yvonne Walters has turned Sears around since taking Over in the liquidation merchandise at Eaton with her son said she welcomes the she complained that Eaton was notoriously overpricing and said she thinks Sears will give her a lower priced alternative when shopping for her Winnipeg mayor Glen Murray said he was pleased to hear one of the cites Eaton stores had been Given a he said he expects to hear in the next few weeks of a similar offer from another retailer to take Over the Polo Park As for the downtown flagship Murray said he is confident an offer to Purchase the building by Osmington the Toronto development company that owns Eaton place will go i expect those negotiations to end he said adding the downtown store will probably be divided into a number of smaller retail giant was Quick to trim fat by Michael Macdonald Canadian press Toronto when comparing the big players in Canadas retail Sears Canada looks like a lean sprinter dodging a crowd of the company has posted record profits every Quarter since leaping ahead of the pack in mean its biggest rivals in the depart ment store and the Bay have fallen far the demise of which has lost million since entered a new phase yesterday when Sears said it would buy eight of Eaton 64 All of its outstanding common shares and the insolvent retailers Trade at the which has endured a three year Price War with Canadas largest retailer posted a loss of million in the first half of this compared with a loss of million a year there Are several reasons Why Sears has most it was the first Chain to restructure in the mid1990s following a brutal recession and the sudden appearance in Canada of Bigboy retailers such As continued please see management team leads Chase for Saan chains president working on business plan by Martin Cash business reporter the president of Saan stores is leading a management Effort to acquire the Winnipeg based and says he will pursue the proposal despite fridays announcement by Gendis that it will hold onto the retail the Gendis announcement seemed to come out of the Gendis president and ceo Allan Mackenzie said yesterday it was made Only after company officials reached their decision not to you cant leave an organization in Mackenzie any time a company is in play it is always accompanied by a certain amount of anxiety and uncertainty among Saan president Bob Whitney Heads a group that includes some equity investors who have tabled a proposal to buy the 299store Chain from it was More than a year ago that Mackenzie first announced Geniss intention to spin off about 50 per cent of Saan in an initial Public offering of shares that was supposed to occur by the end of this but in after Eaton financial problems Mackenzie announced what had become obvious that Canadas retail climate would not make an ipod a Good idea in but the company continued to look for suitors for its family clothing Mackenzie would not confirm that one of the proposals for Saan that Gendis fielded had come from Dalex As has been but he did confirm that one of them has come from a management when asked if fridays announce ment by Gendis Means the manage ment buyout proposal had been Whitney you really have to ask Allan Mackenzie Mackenzie what i said is what i we decided to retain and operate the there is no equiv said As far As he is concerned the proposal is still on the mean he has prepared a business plan for Saan that Mackenzie and head office management Are we Are still discussing the business Whitney As far As the offer is we would make our pitch to the equity but Gendis is looking to enhance shareholder making the company profitable is one Way to enhance the new business plan Means Saan is about to be subjected to a restructuring of one sort or Whitney refused to divulge details of the except to it is very focused on Cost Jamie a Montrea based retail Industry analyst at Groome Cap said the Saan decision was Likely the result of not generating the kind of interest at the Price Gendis was interested the fact that they received pro As opposed to offers to Pur tells you something about How fas they Spreng dont worry about y2k financial author advises investors by Geoff Kirbyson business reporter investors have nothing to worry about As the clock ticks Down on 1999 except perhaps their own says one of Canadas leading financial author the Best thing to do with y2k is to pull the covers up Over your head and ignore i think its going to be a especially in North says Garth the former Federal Revenue minister turned financial author and speak the financial markets will be absolutely ready and the Banks Are the people who pull their Money out to be in a Cash position for the millennium Are and the people who Cash in Good Quality investments and then face a Cap ital gains tax Bill just to buy them Back in january Are also he Turner is in town presenting a financial seminar at the crowne Plaza hotel the one Anda half hour event is sponsored by the investment planning counsel of and admission is a minimum which will be passed on to the special Dean Branch manager for says Turner typically fetches and up for speaking engage although this one will be Shorter than Turner attributes much of the y2k apprehension to scare mongering from people in the financial services but for those who Are confident that the hundreds of millions of dollars spent on ensuring y2k compliance in the banking and financial services sectors was the weeks leading up to the end of the year could make for a great time to add to your any y2k induced correction in the or any correction for that will be a tremendous Opp Ortu if you can buy into the Market at the end of99 at a 20 per cent go for he even without Turner said he feels a correction is imminent considering the trends of the last with Mutual fund sales Down by approximately half and a pronounced movement towards safer such As Canada savings Market volatility has scared Many investors into thinking too much in the Short pull the covers Over your head and ignore it1 continued please see ;