ESL Investments, the hedge fund operated by Sears Holding Corp.’s CEO Edward Lampert, has made a formal bid to purchase the Kenmore brand from Sears, the Chicago Tribune reports.
Earlier this year, it was reported that Sears was mulling the sale of the brand to the hedge fund.
In its proposal, the hedge fund valued Kenmore at $400 million, excluding the impact of cash or debt, according to a Securities and Exchange Commission filing.
In a separate proposal, ESL Investments is offering to purchase a portion of Sears’ home services division for $70 million, the article says.
In a statement to the Chicago Tribune, ESL Investments says the purchase of Kenmore would “enable Sears to improve its debt profile and liquidity position, creating the runway to help continue its transformation, and allow these businesses to unlock their considerable potential by further expanding their presence in the marketplace.”
ESL Investments says it is “prepared to move as quickly as possible,” according to the Chicago Tribune’s report.