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Lampert: Sears Must Act “Without Delay”
Sears Holdings needs to sell off another $1.5 billion in real estate and restructure $1.1 billion in debt to avoid bankruptcy, CEO Eddie Lampert warned in an SEC filing. While acknowledging that the beleaguered retailer has made progress through store closings, property sales and partnerships on its major brands, Lampert said Sears must take further action “without delay.”
The real estate sales would be marketed for sale over the next 12 months under Lampert’s proposal. Any encumbered properties not sold at the end of the 12-month period would be bought by a consortium led by Lampert’s hedge fund, ESL Investments.
In the SEC filing, Lampert offered assistance through ESL, which has repeatedly provided financial support to Sears since he became the retailer’s CEO and largest shareholder. The board of Sears Holdings acknowledged receipt of Lampert’s proposal, and said it had directed the company’s management to work closely with ESL.
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- ◦Sale/Acquisition
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