Sears was going to ask a bankruptcy court’s permission to proceed with liquidation Tuesday when Chairman Eddie Lampert instead asked for more time to advance his 4.4 billion takeover bid’”his request was approved. Sears filed for bankruptcy in October. Lampert’s hedge fund has until Wednesday to pay down a $120 million deposit on his offer. Lampert is also expected to participate in an auction to sell Sears Holdings’ remaining assets.
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Flailing Sears may get another chance to stick around. The 126-year-old retailer on Tuesday was set to ask a bankruptcy court’s permission to proceed with a planned liquidation, but Chairman Eddie Lampert has been granted more time to advance his $4.4 billion takeover bid, according to multiple media reports.
Sears Holdings filed for bankruptcy protection last October. The retailer reportedly planned to tell the court Tuesday it had rejected Lampert’s offer and ask for approval to proceed with a liquidation that would likely shutter hundreds of Sears and Kmart stores and potentially put more than 50,000 people out of work.
Lambert, however, protested Sears’ plan, stressing the millions of dollars in fees paid to Sears’ bankruptcy advisers, according to CNBC, which cited a person familiar with the matter. Lampert’s hedge fund, ESL Investments, now has until 4 p.m. Wednesday to pay a $120 million deposit on his offer, the network reported.