Hackettâ€™s Hardware Stores, the Ogdensburg, N.Y.-based chain of department stores with full service True Value Hardware departments, will become a stand-alone, publicly traded company, under a move by its parent company, Seaway Valley Capital Corp. (SVCC).
Company officials said the move is intended to raise money for investment and operations. â€śWith its growing sales and assets, we felt that bringing Hackettâ€™s out as a stand-alone entity will help both unlock the value of Hackettâ€™s to Seawayâ€™s shareholders and also make it easier for Hackettâ€™s to directly access the capital markets for growth and financial stability,â€ť said Thomas Scozzafava, president of SVCC.
SVCC recently agreed to acquire approximately 88 percent of the voting securities of Florida-based Americas Learning Centers and transferred its shares of Hackettâ€™s into the company. As part of the transaction, Hackett's will change its name to Hackettâ€™s Store Incorporated.
â€śAfter significant investment into Hackettâ€™s by Seaway Valley, we feel this is the right time to position Hackettâ€™s for a considerable capital raise, of which certain proceeds may be used to repay indebtedness at the Seaway Valley level,â€ť Scozzafava said. Seaway Valley has current assets of more than $35 million and $8 million in shareholder equity and recently announced the exploration of strategic alternatives including debt and equity restructuring and the eventual monetization of certain of its holdings.
Hackettâ€™s announced recently that it would open in its 11th location in Sackets Harbor, N.Y. The company is one of the nationâ€™s oldest retailers with roots dating back to 1830. Each of its larger stores contains a True Value hardware department with hardware, tools, plumbing, paint and electrical departments. Other departments in the stores include menâ€™s, womenâ€™s and childrenâ€™s brand name apparel, athletic, casual and work footwear, home decor, gifts, seasonal merchandise and sporting goods.