Kirsh controls London-based Kirsh Group, a closely held conglomerate with a 75 percent stake in commercial food supplier Jetro Holdings. He’s worth $5.5 billion, according to the Bloomberg Billionaires Index.
The other investor is the family of the late Ludwig Jesselson, who previously ran Philipp Brothers, once one of the world’s largest commodities trading firms. His son, Michael, heads his own financial firm, Jesselson Capital, and is a director of retailer American Eagle Outfitters Inc.
Larson and Cascade’s outside spokesman didn’t return telephone calls seeking comment. Representatives for Kirsh’s family office and Michael Jesselson also didn’t return calls.
Levin said the venture will invest in industries most buyout firms are avoiding. “We don’t believe bricks and mortar are going away," Levin said of retailers.
‘Beaten Up’ Companies
Buyout deals involving retailers total $6.3 billion so far this year, down 73 percent from all of 2015, according to London-based Preqin. Teen clothing chain Aeropostale Inc. filed for bankruptcy protection in May, while stores like Macy’s Inc. and Sears Holdings Corp. are struggling.
“The market has beaten up these companies quite a bit,” said Kevin Keung, an investment analyst at Water Island Capital, the New York-based manager of The Arbitrage Fund. “There are opportunities in the turnaround space.”
JW Levin will root out these deals. After working as a dealmaker at Pillsbury Co., Levin in 1989 joined Perelman, the investor known for using junk bond financing from Michael Milken to acquire control of companies. Perelman installed Levin as CEO and chief fixer of several of businesses, including Revlon Inc. and Sunbeam Corp., which had just ousted its CEO.
From Saks to J.C. Penney
Sadove is known for mending fallen retailers. In 2013, he sold Saks for $2.7 billion and became a director at J.C. Penney Co. to help revitalize the company. Sadove left that board in May.