Hilco Retail Acquisitions will look for companies that have attractive assets and large store counts but are unable to compete in the market because of financial constraints. "Our goal is to restructure, hold and at some point there could be a liquiditation event," Kaye says. "Our goal is not to buy and flip."

Michael Lynch, the former CEO of Kmart Canada, will head Hilco Retail Acquisitions. After a 30-year career with Kmart, Lynch joined Hilco's older retail disposition unit as chief operating officer in 2000. Four years later he was promoted to head the firm's retail inventory appraisal specialty practice group.

The Hilco Organization is no stranger to big retail deals. Last year it acquired, in a joint venture, 74 Karstadt department stores in Germany for just over 400 million euros. It has also invested in such retailers at Bargain Shop!, Littlewoods and Texstyle World.