Staples' Leadership and Strategy Evolve Under Sycamore's Ownership
Staples has witnessed a series of leadership changes and acquisitions under Sycamore Partners' ownership. In April 2021, Shira Goodman stepped down as CEO, succeeded by J. Alexander Douglas. Meanwhile, Sycamore, which acquired Staples in 2017, has been active in reshaping the company's business operations and exploring financial strategies.
Sycamore, which took Staples private in 2017, split off the company's business-to-business and retail operations. The private equity firm is now considering a recapitalization plan involving $1 billion in additional debt, which would bring Staples' total debt load to $5.325 billion.
The plan, if approved, would allow Sycamore to regain about two-thirds of the $1.6 billion it invested in Staples. However, dividend recapitalization plans for private equity-backed retailers have had mixed results, with some companies like Payless ultimately filing for bankruptcy.
Staples has also been active in acquisitions under Sycamore's ownership. In September 2021, the company acquired workplace product and services company Essendant for $996 million. The FTC approved the merger with conditions to maintain separate sales teams. Earlier, in June 2021, Staples acquired business solutions company HiTouch Business Services.
Staples' leadership and business operations have evolved significantly under Sycamore Partners' ownership. The company's future financial strategy remains uncertain, with a proposed recapitalization plan pending. Meanwhile, Staples continues to grow through strategic acquisitions, with John Lederer serving as CEO and Michael Motz leading Staples US Retail.
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