Published: Tue, January 08, 2019
Economy | By

Sears Takeover Bid Fails, Asks Bankruptcy Judge To Liquidate

Sears Takeover Bid Fails, Asks Bankruptcy Judge To Liquidate

"Sears Holdings Corp will ask a bankruptcy judge on Tuesday if it can proceed with liquidation after it could not reach an agreement on Chairman Edward Lampert's $4.4 billion takeover bid, casting doubt on the survival of the 126-year-old USA department store", Reuters exclusively reported Tuesday, citing sources familiar with the matter.

The Sears board rejected Lampert's $4.4 billion bid Friday to acquire 425 Sears stores along with other assets of the bankrupt retailer - and a last-minute scramble to improve the offer has not moved the needle, sources tell The Post. His offer, though, was deemed insufficient by Sears' advisers, the people said.

Sears Chairman Edward Lampert's push to save the bankrupt retailer still has a shot to succeed.

Still, ESL plans to protest Sears' decision, a person familiar with the situation told CNBC. The 126-year-old company, whose closure would be among the most high-profile retail bankruptcies in recent years, struggled to convince suppliers to keep shipping it merchandise by touting the $300 million in financing it has secured in November so that its business could operate through the holidays. Still, it marks the end of an era for the company that started in 1893 as Sears, Roebuck & Co., and was once the nation's largest retailer. The combined companies became victim of savvier competition, changing shopping habits and, many have argued, poor management.

Sears' last profitable year was in 2010.

The demise of the Big Store Lampert in 2002 bought Kmart debt as the discount retailer entered Chapter 11 bankruptcy protection, and at the same time purchased Sears shares.

ESL declined to comment. Transform Holdco, a new entity controlled by ESL, said in a letter to Sears' investment banker that it believes keeping the Hoffman Estates-based retailer in business is the best way to preserve jobs and recover money the retailer owes.

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