Sears will possibly avoid company liquidation because Sears chairman Edward Lampert proposed to purchase the company for $4.4 billion, according to a report from CNBC.
The proposal was formally submitted through an affiliate of ESL Investments, the hedge fund Lampert manages. In December, ESL Investments outlined its proposal to save thousands of employee jobs.
“… A future for Sears as a going concern is the only way to preserve tens of thousands of jobs and bring continued economic benefits to the many communities across the United States that are touched by Sears and Kmart stores,” according to a statement from the hedge fund.
Sears’ deadline to determine if the proposal comes from a “qualified bidder” is Jan. 4, CNBC says.
“Only then could ESL take part in an auction against liquidation bids on Jan. 14. They will weigh the value of Lampert’s bid against offers to liquidate the company,” CNBC reports.
In addition, the company announced the coming closure of 80 Sears and Kmart locations across the U.S. by March, according to a separate report from CNBC. Liquidation sales at the 80 stores will begin within two weeks, CNBC reports.