Published: Wed, January 09, 2019
Markets | By Otis Pena

Sears rejects bailout bid, hundreds of stores likely to close

Sears rejects bailout bid, hundreds of stores likely to close

As late as Monday night, the company had told involved parties it was planning to announce a liquidation before the market opened on Tuesday in NY, according to a person with knowledge of the matter. But itis still possible that those wishing to shutdown the company will bid more for the assets than Lampert is offering, which wouldset the company on the path of shutdown once again rather than remaining in business.

For Sears Holdings, it appears the end is at hand.

Lampert touted his merger of Kmart and Sears as laying the groundwork for their revival, a scenario that did not work out, and had the hedge fund manager relinquishing his role as CEO just after Sears filed for bankruptcy protection last fall.

Drain said that Sears will consider Lampert's offer versus a potential liquidation during a bankruptcy auction on January 14.

The decision was predicated on the condition that Lampert's hedge fund provide a $121 million deposit by Wednesday, as the former CEO makes a last-ditch effort to save the company. As many as 50,000 jobs are at stake.

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One of America's most iconic businesses, which has been in business for over 125 years and still employees 68,000 people, is on the verge of liquidation after an eleventh-hour, $4.4 billion takeover bid failed to satisfy advisers to the company, which hasn't turned a profit in almost a decade. It was not immediately clear Tuesday how much, if any, debt forgiveness will be included in this revised offer, since final details of the bid are not yet known.

But the deal announced Tuesday afternoon at least gives the company a chance of surviving. The attorney does not represent Lampert.

Troubled US retail giant Sears is considering a revised takeover bid from its chairman's hedge fund after being left on the brink of liquidation.

In November, the creditors committee raised questions about financial dealings between Lampert, ESL and Sears, saying those transactions "may be part of an extended pattern of conduct that served to benefit certain (insider) equity holders", according to court filings.

If Sears doesn't accept the bid, it will likely have to ask the court for permission to start shutting down the business.

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