With deal news from Kohl’s and Karl’s Event Rental
Kohl’s acquires store sites from bankrupt Mervyns
Kohl’s Corp. prevailed late last week in a joint bid with Forever 21 Inc. in an auction of leaseholds held for former Mervyns store sites.
Together, the retailers acquired 46 locations for approximately $6.25 million. Kohl’s will assume 31 of the locations, while Forever 21 will assume 15, pending approval by the court overseeing Mervyns bankruptcy proceedings.
"We are pleased with the results of the auction," said Kevin Mansell, president and chief executive officer of Menomonee Falls-based Kohl’s Department Stores. "With over 1,000 stores from coast to coast, these locations provide increased presence in under penetrated markets. We will continue to be opportunistic and prudent in our discussions with the owners of select Mervyns real estate as we continue to position Kohl’s to grow market share."
In fiscal 2009, Kohl’s expects to open approximately 50 stores, including the majority of the 31 former Mervyns’ locations.
Karl’s Event Rental acquires assets in Maryland
Oak Creek-based Karl’s Event Rental has acquired the tent-rental assets of TVI Corp. for $2.1 million.
In connection with the acquisition, Karl’s also assumes the lease agreement for TVI’s facility in Frederick, Md.
TVI is a Glenn Dale, Md.-based international supplier of military and civilian emergency first responder and first receiver products, personal protection products, quick-erect shelter systems and equipment rentals.
TVI expects to incur charges totaling approximately $100,000 in the fourth quarter of 2008 related to legal, severance and other transition costs related to the sale.
TVI previously announced its decision to close its Frederick location and exit the tent-rental business. With the sale, the company completed the exit and fully monetized the assets associated with its tent-rental business.
"This transaction provides us with critical capital to lower our obligations and reduce our operating costs," said Harley Hughes, TVI’s president and chief executive officer. "It also enables us to focus our energy and resources on the more promising components of our business including filter canisters, powered air respirators, shelter systems and power, air and kitchen (PAK) rentals."
