Lampert makes last-minute bid to save Sears

Facing liquidation, US retail chain Sears has been extended a lifeline in the form of a new takeover bid of more than US$5 billion from chairman Eddie Lampert.

The bid was made after Lampert’s previous efforts, a US$4.4 billion offer as well as a secondary offer to purchase 250 of the retailers locations, were seen to be “administratively insolvent” – unable to cover the fees and vendor payments owed – and ultimately rejected.

The revised offer has been described as the “best possible path forward for Sears, its associates and the many communities across the United States touched by Sears and Kmart stores,” by an ESL Investments spokesperson, according to Reuters.

“We believe our proposal will provide substantially more value to stakeholders than any other option, in particular a liquidation,” the spokesperson said in a statement.

The bid would allow upwards of 50,000 employees to keep their positions.

The offer will be considered on 14 January and weighed against how much money would be brought in should the brand be sold on in pieces.

According to Reuters, a group of Sears creditors have been calling for the chain to shut down for good in order to recover the maximum return and are considering suing Lampert over past deals to further boost the amount they could recoup.

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.

Comments

Comment Manually

I have read and agree to the Terms and Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inside Retail Polls

Do you plan to participate in Halloween this year?
Vote

Twitter

Do you enjoy receiving our daily Newsbriefs, weekly publications, quarterly magazines and attending our Academy eve… https://t.co/JdcO4xcwOH

2 weeks ago

Know an outstanding retailer supplier? Nominate them for the 2020 Retailer Awards: https://t.co/HsvxfGp6aK #RA20https://t.co/FsSnykknRF

3 weeks ago

Do you know any retailer with exceptional customer experience? Nominate them at 2020 Retailer Awards:… https://t.co/Tc3DDjJbFV

3 weeks ago
x

SUBSCRIBE
FREE NEWS BRIEFS Get breaking news delivered