Published: Wed, January 09, 2019
Money | By Ralph Mccoy

Sears Takeover Bid Fails, Asks Bankruptcy Judge To Liquidate

Sears Takeover Bid Fails, Asks Bankruptcy Judge To Liquidate

Sears Holdings Corp agreed on Tuesday to consider a revised takeover bid from Chairman Edward Lampert, temporarily staving off a liquidation that would have spelled the end of the 126-year-old USA department store operator.

Lampert entered the bid through Transform Holdco LLC, an affiliate of his private equity firm, ESL Investments Inc.

Lampert's offer also included a proposal to forgive $1.3 billion of debt he holds in exchange for ownership of the reconstituted Sears, a bankruptcy maneuver known as a credit bid that has also drawn objections from creditors.

Sears Holdings Corp shares surged on the news, rising to a daily high of $0.365 in the over-the-counter markets as of the time of writing. The deal could keep 425 of the stores open.

A recent Bloomberg report said Sears representatives summoned liquidation firms and other advisers to emergency meetings on Friday after it rejected the bid and that the retailer would now focus on preparing for liquidation sales to start as early as mid-January.

For now, it seems, the "Amazon of the 1930s" will remain on life support, at least for a little while longer.

Sears and Kmart have been undergoing a slow collapse over the last decade as more retail sales have moved to online channels. It is still possible that those wishing to shutdown the company will bid more for the assets than Lampert is offering.

Beijing school attacker injures 20 children
In November, five people were killed when a auto ploughed into a crowd of children outside a north-eastern Chinese nursery. However, Jia was upset about the arrangement and used his hammer to attack students during class, ' the statement read.

Golden Globes: The Best Memes And Viral Moments
The Fiji Water Girl became insta-famous after photobombing stars like Idris Elba , Judy Greer , Richard Madden and Amy Adams . She actually followed the stars out into the crowd to make sure she got her shot.

EPL: Van Gaal reveals team that will win title
Yes, they have just lost to their closest rivals, but that is the only negative about their situation. What do Liverpool need to do next? There is no reason why Liverpool can not do that too.

"U.S. Bankruptcy Judge Robert Drain in the Southern District of NY, who is presiding over the case, could decide to give Lampert more time to improve on his bid, the sources said", Reuters notes.

"The bankruptcy process is burning through a lot of money and these assets are more valuable today rather than tomorrow", said a source close to the creditors.

It was America's largest retailer by revenue until 1989, when Walmart overtook it.

In addition, Lampert wanted a release from legal exposure related to a series of transactions he completed with the retailer before it filed for bankruptcy protection. But at Tuesday's hearing Drain called this preliminary agreement "a good development".

It hasn't had a profitable year since 2010, and it has lost $12 billion since then.

Sears dates back to the late 1880s and its mail-order catalogs.

Like this: