Report: Staples to be split into three units

Sycamore Partners has a plan for its newest retail acquisition, Staples.



The private equity firm, which purchased the office supply giant for $6.9 billion on Wednesday, plans to divide the chain into three separately financed units: U.S. retail; Canadian retail; and corporate-supply businesses, reported The Wall Street Journal reported. The three units will all remain under the same corporate umbrella.



The move is designed to make the sale an easier sell to bond and loan investors whose appetite for retail holdings has waned among the industry's struggles, according to the report. Wells Fargo & Co. will finance the U.S. retail segment with a loan backed by Staples' assets, according to the WSJ.