Hilco Retail Acquisitions Business Unit Launched

Jeffrey B. Hecktman, Chairman and CEO of The Hilco Organization, announces the formation of Hilco Retail Acquisitions, LLC (“HRA”). The company seeks to acquire small to mid-size retail companies with multiple store locations, based in North America, with specific brand recognition and a demographic need for their market presence.

HRA will be headed by Michael Lynch, who had a successful career with Kmart, spanning almost 30 years. He was CEO of Kmart Canada, a billion dollar mass merchant. He also had oversight responsibilities for most of Kmart’s operations in the United States, Asia, Mexico and Europe. In 2000, Mr. Lynch joined Hilco Merchant Resources, the retail inventory disposition unit of The Hilco Organization, as its Chief Operating Officer. In 2004, he was named to lead the retail inventory appraisal specialty practice group within Hilco Appraisal Services. Mr. Lynch’s experience as a retailer-operator, combined with his acute understanding of retail asset values, positions him well to identify opportunities, structure acquisitions and map restructuring strategies.

Typically, HRA will look for “stressed” but not necessarily “distressed” retailers. The former would be characterized as having appreciative assets but an inability to compete, principally due to their current financial performance and/or their capability to implement the required strategic operational or merchandising initiatives, which are necessary to profitably grow in today’s retail climate.

Additionally, companies being considered for acquisition would usually benefit from a restructuring of the capital base to bring it on par with competitors, plus intervention from new, experienced executive management whose role would be to stabilize then revitalize the business.

Says Mike Lynch, “Our ultimate goal is to increase enterprise value. We are interested in acquiring underperforming retail operations, divestitures from larger retail operations, or platforms whose entrepreneurial founders are ready to exit the business.”

Mr. Lynch adds, “HRA is the next logical step for Hilco following successful ventures with retailers such as Bargain Shop!, Karstadt, Littlewoods, Alders, B C Moores and Texstyle World. What makes HRA unique is our partnership with other Hilco businesses. They can provide our acquisitions with experienced and seasoned retail executives as well as financial and marketing support to re-energize the brand and core business model. Hilco can help focus the business to create greater enterprise value through consistent profitability and market expansion.”