- Sears Chairman Eddie Lampert has another chance to save the company from total liquidation.
- Lampert’s $4.4 billion takeover bid will be assessed against competing parties’ bids at an auction scheduled for January 14, a judge said during a hearing in New York on Tuesday.
Sears Chairman Eddie Lampert has one last chance to save the company from a total liquidation.
Lampert’s $4.4 billion takeover bid will be assessed against competing parties’ bids at an auction scheduled for January 14, a US bankruptcy judge said in court on Tuesday.
“The auction … will involve the debtors and their key consulting parties evaluating not only ESL’s [proposal] but all their alternatives,” Judge Robert Drain said.
He referenced the size of Sears and the fact that the company “affects a lot of people,” and said ESL’s proposal may enable Sears to “survive as a going concern.”
Sears appeared in court on Tuesday prepared to pursue a liquidation after rejecting Lampert’s bid, which was submitted last month through his hedge fund, ESL Investments.
But last-minute negotiations that twice delayed Tuesday’s hearing led to the deal that gave Lampert another opportunity to compete for Sears’ assets.
For his bid to stay alive, Lampert must provide the company with a $121 million deposit by Wednesday.
Lampert’s bid would keep about 425 stores open.