Sears Chairman Eddie Lampert has another chance to buy the retailer out of bankruptcy
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| Photo Credit: Miosotis Jade |
Article By: Jesse Watrous
Sears Chairman Eddie Lampert was given another chance by a bankruptcy judge to buy the retailer out of bankruptcy and save roughly 50,000 jobs. Lampert placed a $4.4 billion bid to save Sears through his hedge fund ESL Investments.
From CNBC:
Sears Holdings had planned to reject Lampert's bid to save the 126-year-old company, which would have put it on a course to liquidation.
Lampert had put forward a $4.4 billion bid to save Sears through his hedge fund ESL Investments. One of the biggest unresolved issues had that it fell short of covering the fees and vendor payment it owes, making it "administratively insolvent."
ESL protested Sears' decision. ESL, which worked over the weekend to improve its offer, pointed to the advisory fees that Sears has racked up during bankruptcy, a person familiar told CNBC. Such fees are part of Sears' administrative expenses.
Ultimately, the bankruptcy judge gave Lampert more time — but at a cost. ESL will now be required to pay a $120 million deposit by 4:00 p.m. Wednesday. Sears will allow Lampert to participate in a previously scheduled auction Monday, when it will compare ESL's offer to others by liquidators. But it's unclear where he will get the funds to back his offer. A person familiar with the situation told CNBC Lampert has been working to get the financing.
The people requested anonymity because the information is confidential.
We have to wait and see what happens on January 9, 2019 to see if Sears will be saved by Lampert's bid. If not, then farewell to Sears.
