Lampert Bids $4.6B For Sears

Would buy 500 stores, save 50,000 jobs
Author:
Publish date:
Sears’ major appliance suppliers are standing fast with the ailing chain, chairman/CEO Eddie Lampert said, even as its losses continue to mount.

Eddie Lampert

ESL Investments, the hedge fund run by Sears chairman and former CEO Eddie Lampert, has made a $4.6 billion offer today to buy Sears out of bankruptcy.

According to CNBC, the proposal includes $950 million in borrowed cash, $1.8 billion from the sale of secured creditor collateral (a so-called credit bid), and the assumption of about $1.1 billion in liabilities from gift cards, loyalty program points and extended warranties.

ESL said the purchase price would include 500 stores and save about 50,000 of the company’s current 68,000 jobs.

CNBC added that a stalking horse bidder, to be named in bankruptcy court on Dec. 15, may also be vying for the business, and that Sears’ unsecured creditors, looking to salvage maximum value, would rather see the company liquidated and auctioned off in pieces than sold to ESL.

Related: Attention Sears And Kmart Shoppers: ‘We’re Open For Business’

Featured

Related Articles

Sears Holdings has trimmed 100 positions at its headquarters complex here and 15 posts at other corporate support locations.

Sears Trimming HQ Staff

Sears Holdings is eliminating about 220 corporate posts, with the majority coming out of its Hoffman Estates, Ill., headquarters.