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Sears Chairman Makes $4.6B Bid for Bankrupt Retailer
Sears Holdings chairman Eddie Lampert is proposing to buy the bankrupt retailer’s remaining 500 stores along with other businesses in a proposal valued at $4.6 billion. The deal would also entail Lampert’s ESL Investments, Sears’ largest shareholder, buying Sears Auto Centers, the DieHard battery line, the Kenmore appliance line and the retailer’s home services division.
“ESL Investments continues to believe in Sears Holdings’ immense potential to evolve and operate profitably as a going concern with a new capitalization and organizational structure,” ESL wrote in a letter outlining its plan.
The $4.6-billion package includes raising $1.7 billion in cash through maneuvers that include Hoffman Estates, IL-based Sears seeking a $950-million loan backed by collateral. ESL would also forgive $1.8 billion in debt it’s owed by Sears and assume $1.1 billion in existing Sears liabilities.
Other potential investors have expressed interest. A “stalking horse bidder” will be named on Dec. 15.
Pictured: Sears Headquarters
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