Sun Capital Partners Inc, the private equity owner of Limited Stores LLC, disclosed on Friday it has almost doubled its investment in the troubled U.S.
Sun Capital Partners told investors in a letter that it has made 1.8 times its $50 million investment in Limited Stores, thanks to prior distributions and dividends, according to an email to investors seen by Reuters.
Erik Gordon, a professor at the University of Michigan Ross School of Business, called Sun Capital's return on its investment "an unusually happy ending for the private equity firm," though he added that the nine-year period during which Sun Capital was an investor in Limited Stores was a "little on the long end." Brick-and-mortar retailers, from smaller chains like The Limited to mall anchors including Macy's Inc, have been hard hit as shoppers move online and to offprice sellers.
Wal-Mart CEO: We'll Be Shopping Very Differently in 10 Years With the shutdown of The Limited stores, the positions of 4,000 workers, including 800 full-time permanent employees, would be eliminated, according to people familiar with the company's plans, who were not authorized to discuss the matter with the media.
In the letter to investors, Sun Capital said Limited Stores is evaluating strategic alternatives for the company's remaining e-commerce business and intellectual property.