Hedge fund manager Edward Lampert will become Sears' new CEO.
Sears (Fortune 500) said that D'Ambrosio is resigning effective Feb. 2, the end of the company's fiscal year. D'Ambrosio, who joined Sears as CEO and president in Februrary 2011, will continue to remain on the board of directors until May 2013 "to assist with a smooth transition," the company said. ,
In 2004, Lampert was already being dubbed a potential "Warren Buffett" for his strong returns as an investor, prior to his takeover of Sears the following year, when he merged the company with KMart.
Lampert is also the chairman and CEO of ESL Investments, Inc., a hedge fund that he founded in Dallas in 1988, which is now based in Greenwich, Conn. Like Buffett, Lampert does not reveal his holdings. But according to Lionshares.com, an online corporate ownership database, the primary holding for Lampert's company is Sears. ESL also has shares in Autonation Inc (Fortune 500)., , Gap Inc (Fortune 500)., , Capital One Financial Corp (Fortune 500). and , Netflix Inc. ( )
ESL's market value is about $4.6 billion, with Sears comprising more than a third of the shares. More than 90% of ESL's shares are in the retail sector.
Sears, which is based in Hoffman Estates, Ill., said that it has yet to determine Lampert's compensation.
The company also reported that it expects a net loss of $280 million to $360 million, or a loss of $2.64 to $3.40 per diluted share, in the quarter ending Feb. 2. This includes a pension charge of $450 million, or $3.40 loss per diluted share.
Sears' stock price has plunged more than 50% over the last three years. The company had its membership in the S&P 500 revoked last year, after having been a member of the index since 1957. The retailer struggled with declining sales since merging with Kmart in 2005 and closed hundreds of department stores, fueling rumors of a potential bankruptcy.
|Mark Zuckerberg calls Obama to complain about NSA|
|Microsoft's next big headache: The Google Chromebook|
|McDonald's workers sue for wage theft|
|Amazon increases price of Prime|
|Dow falls more than 200 points|