Friday, September 9, 2005

Lampert shakes up top management at Sears

Chairman names Aylwin Lewis to replace Lacy as CEO; will take more active role in merchandising.

By Dave Carpenter / Associated Press

Gregory Bull / Associated Press Edward Lampert, chairman of Kmart, left, named Aylwin Lewis, center, to replace Alan Lacy, CEO of Sears Holding. The photo was taken earlier during the announcement of the merger between Kmart and Sears. Comment on this story Send this story to a friend Get Home Delivery

CHICAGO -- Hedge-fund wizard Edward Lampert is taking on a startling new role at Sears Holdings Corp.: chief marketer and merchandiser.

The billionaire chairman shook up top management at the No. 3 U.S. retailer Thursday after another poor quarter, naming Aylwin Lewis to replace Alan Lacy as CEO and taking on a more direct role at the struggling company.

The moves come with sales still sinking at the company's two laggard chains, nearly six months after Kmart Holding Corp.'s acquisition of Sears, Roebuck & Co. Reporting results from the first full quarter after the merger, Sears Holdings said it had a lower-than-expected profit of $161 million.

The news disappointed investors, who had driven up Sears' stock dramatically both before and after the March 24 merger engineered by Lampert. Shares in the company sank $7.04, or 5.2 percent, to close at $127.81 in heavy trading on the Nasdaq Stock Market, far off their peak of $163.50 in July.

Lampert, founder of Greenwich, Conn.-based hedge fund ESL Investments, which takes large stakes in distressed companies, will direct the marketing, merchandising, design and online businesses of Sears Holdings as well as its Lands' End casual-clothing unit.

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