Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • August 2008 (Revised May 2009)
  • Case
  • HBS Case Collection

Kmart and ESL Investments (A)

By: Stuart C. Gilson and Sarah Abbott
  • Format:Print
  • | Pages:24
ShareBar

Abstract

A major bankrupt retailer is poised to emerge from Chapter 11. Two activist hedge funds ("vulture investors") will own over 50% of reorganized Kmart's common stock, based on prior investments in Kmart's debt claims, and an infusion of new equity financing. The Chapter 11 process has generated both costs and benefits for the company. Its future profitability, and the value of the reorganized business, are both highly uncertain.

Keywords

Restructuring; Capital Structure; Insolvency and Bankruptcy; Investment; Investment Activism; Valuation; Financial Services Industry; Retail Industry; United States

Citation

Gilson, Stuart C., and Sarah Abbott. "Kmart and ESL Investments (A)." Harvard Business School Case 209-044, August 2008. (Revised May 2009.)
  • Educators
  • Purchase

About The Author

Stuart C. Gilson

Finance
→More Publications

More from the Authors

    • July 2023
    • Faculty Research

    Equity Restructuring at Dell Technologies: Buy Out, Buy Up, Buy In (B)

    By: Stuart C. Gilson and Sarah L. Abbott
    • July 2023
    • Faculty Research

    Equity Restructuring at Dell Technologies: Buy Out, Buy Up, Buy In (A)

    By: Stuart C. Gilson and Sarah L. Abbott
    • April 2022
    • Faculty Research

    PG&E and the First Climate Change Bankruptcy

    By: Stuart C. Gilson
More from the Authors
  • Equity Restructuring at Dell Technologies: Buy Out, Buy Up, Buy In (B) By: Stuart C. Gilson and Sarah L. Abbott
  • Equity Restructuring at Dell Technologies: Buy Out, Buy Up, Buy In (A) By: Stuart C. Gilson and Sarah L. Abbott
  • PG&E and the First Climate Change Bankruptcy By: Stuart C. Gilson
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College