First reported by Cnbc.com
- The chairman of Sears is trying to make one big hail mary pass to save the heritage company from a demise.
- Eddie Lampert is making a bid for the company he has chaired led by his hedge fund, ESL Investments.
- ESL submitted a $4.6 billion proposal on Thursday to help save the bankrupt retailer with the purchase of 500 stores.
- Some of the creditors that Sears owes would rather see the company liquidated than to sell to ESL.
- Is it simply too late for Sears?
- Has the time for companies like Sears and KMart simply come and gone?
ESL Investments, the fund run by Sears Chairman Eddie Lampert, submitted a $4.6 billion proposal on Thursday to help save the bankrupt retailer by buying 500 stores.
Sears Holdings, owned by Sears Department Stores and Kmart, filed for bankruptcy on 15 October. In previous court cases, he said that he was in talks with ESL about a “consideration bid” that could help the company emerge from bankruptcy.
The offer outlined Thursday included up to $950 million in cash through an asset-based loan facility, a “credit bid” of $1.8 billion and the assumption of roughly $1.1 billion in liabilities. The liabilities assumed include gift cards, points from its Shop Your Way loyalty program and protection agreements from Sears Home Services. Other funds include additional cash, notes and the rollover of cash collateral.
Sears Chairman Eddie Lampert submits a proposal to save Sears. https://t.co/ywb48VJDWd
— CNBC (@CNBC) December 6, 2018
Sears Chairman Eddie Lampert submits $4.6 billion proposal to save Sears https://t.co/TuU9ZtkHxo
— Rob (@reg1776) December 6, 2018
🇺🇸 Sears Chairman Eddie Lampert submits proposal to save Sears. https://t.co/CboQRyyehQ
— Neil Saunders (@NeilRetail) December 6, 2018
— Dawn Kopecki (@Dawn_Kopecki) December 6, 2018