Sears Holding Corp. (SHLDQ) is facing liquidation as early as tomorrow. The company’s last hope is hinged on a $4.6 billion bid by Chairman Eddie Lampert. According to a report by CNBC, Lampert has offered to buy Sears as a whole through ESL Investments, the hedge fund he manages, in order to save the retailer from bankruptcy.
However, Lampert has not yet submitted his proposal or made funding arrangements. The deadline for the bid is 4 pm ET, Friday and some insiders believe he might put forth his proposal at the last minute. If Lampert submits the proposal, Sears will have one week to consult with its advisors to determine his ability to participate in the auction, which will take place in mid-January.
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%.
Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.
Most Popular
CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%
Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss
Key metrics from Nike’s (NKE) Q2 2025 earnings results
NIKE, Inc. (NYSE: NKE) reported total revenues of $12.4 billion for the second quarter of 2025, down 8% on a reported basis and down 9% on a currency-neutral basis. Net
FDX Earnings: FedEx Q2 2025 adjusted profit increases; revenue dips
Cargo giant FedEx Corporation (NYSE: FDX), which completed an organizational restructuring recently, announced financial results for the second quarter of 2025. Second-quarter earnings, excluding one-off items, were $4.05 per share,
Comments