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Lampert Reportedly Makes Winning Sears Bid, Saving Iconic Retailer From Liquidation

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Lampert Reportedly Makes Winning Sears Bid, Saving Iconic Retailer From Liquidation

Sears Holdings Corp (OTC: SHLDQ) Chairman Eddie Lampert has won a bankruptcy auction for the company with a bid of about $5.2 billion, saving the retailer's remaining stores and employees from the chopping block. 

Several news organizations reported that Lampert prevailed in a closed-door auction early Wednesday after raising his earlier $5-billion bid. Lampert winning the auction was likely the only chance for the 126-year-old retail icon to remain open, as creditors were seeking to liquidate the company.

The deal is subject to final approval by a federal bankruptcy judge, which could come later this week.

Lampert’s bid was made through his hedge fund ESL Investments Inc. and will allow nearly 50,000 Sears and Kmart workers to keep their jobs at 425 remaining stores.

Sears is one of the biggest victims of the massive shift in the retail industry that has seen customers move to online sellers in the last decade or so.

Lampert, the former CEO of Sears, had initially bid just over $4 billion for the company, but had to sweeten it a couple of times to get to Wednesday’s reported acceptance of his plan.

Hoffman Estates, Ill.-based Sears filed for Chapter 11 bankruptcy protection in October following years of revenue declines and store closures. Since then the company has continued to close dozens of Sears and Kmart stores.

USA Today reported that some of Sears’ creditors are expected to protest the deal before U.S. Bankruptcy Judge Robert Drain issues a final decision.

Related Links:

Sears Gets Temporary Reprieve: Lampert Has Hours To Raise $120 Million

10 Of The Largest Retail Bankruptcies Since 2016

Photo courtesy of Sears.

 

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