Sears will live to sell another day, CNN reports.
After reviewing a $5.2B bid to save the company, bankruptcy court judge Robert Drain approved the sale of most of Sears’ assets to ESL Investments, the hedge fund managed by Edward Lampert, Sears’ former CEO and current chairman, according to the article.
Approval of Lampert’s plan means 425 Sears and Kmart stores will remain open and approximately 45,000 employees will keep their jobs, according to CNN.
Previously, The Wall Street Journal reported Sears’ creditors opposed the sale of the company to ESL Investments, arguing Lampert’s hedge fund “used stock buybacks, spinoffs and dividends to rake in billions while stripping the company of its best assets.” The article notes ESL Investments has denied those allegations.
CNN reports those creditors had previously wanted to shut Sears down and liquidate its assets. The article also reports these creditors are owed more than $3 billion by Sears.
“Those creditors will now have to wait to find out how much they get of the money they are owed, but it is likely to be pennies on the dollar in many cases,” CNN reports.
For more information on Sears’ past, its challenges throughout 2018 and what the future holds for the company, be sure to check out the March 2019 issue of Hardware Retailing. Subscribe now to ensure you’re the first to receive a digital copy.