If Lampert fails to meet the deadline, the liquidation process for Sears and Kmart will begin. The report states that Lampert and ESL are the only ones willing to buy Sears as a whole. Sears filed for bankruptcy in October and has announced a large number of store closures since then. It is likely the company will have to close more stores soon.
Fresh hope for Sears after chairman Eddie Lampert makes buyout offer
As per the report, Lampert’s $4.6 billion proposal consists of various tranches of financing but not much of his own money. Although the Sears chairman has been looking for a loan, investment banks do not appear very keen to put their money into a loss-making business. Some parties have criticized his efforts, terming it a gamble.
As of 12:20 pm ET, Sears’ stock was up 9.2%.