Hanover Direct Names CFO
Weehawken, N.J., Hanover Direct appointed John Swatek to serve as its senior VP, CFO and treasurer beginning in April. Swatek most recently served as VP and controller of Linens ’n Things, where he held various positions beginning in 2001. Swatek succeeds Charles E. Blue, who resigned effective March 8. Wayne P. Garten has served as acting CFO during the interim period.
Toys “R” Us Sold for $5.7 Billion
Wayne, N.J., Add another billion-dollar retail transaction to the history books. Toys “R” Us, the original category killer, agreed to be bought by a consortium of two different private equity firms and Vornado Realty Trust. The trio, which will be equal partners in the deal, agreed to pay $5.7 billion for the toy chain. The investors, Vornado, Kohlberg Kravis Roberts, and Bain Capital Partners, agreed to pay $5.7 billion for the toy stores as well as the Babies “R” Us stores. The chain had originally hoped to split the two business, and focus on the faster-growing Babies.
The deal once again brings attention to the valuable real estate holdings at some struggling retailers. While Toys “R” Us has been steadily losing the market-share battle to Wal-Mart over the years, its leases are increasingly valuable. According to reports, the trio of new owners will continue to operate Toys “R” Us as a toy chain for the foreseeable future. Reports also indicate that Toys “R” Us president John Barbour will stay on board.