Sears believes Eddie Lampert's bid to save the company is short. Without a deal, company could liqui
Source: CNBC
Sears believes Eddie Lampert's bid to save the company is short. Without a deal, company could liquidate
Eddie Lampert's $4.4 billion offer is the only bid that could keep the company going in its entirety.
Sears, which also owns Kmart, filed for bankruptcy in October.
The 125-year-old company has more than 68,000 employees.
Lauren Hirsch
Published 1 Hour Ago Updated 22 Mins Ago
Sears' advisors are testing just how much Chairman Eddie Lampert wants to keep the retailer alive.
Lampert has put forward a $4.4 billion bid to save Sears and 50,000 jobs by buying it out of bankruptcy through his hedge fund ESL Investments. His offer, though, which is largely funded with outside sources of capital, is facing tough scrutiny from Sears advisors, people familiar with the situation tell CNBC. If the two are unable to find a resolution, it could force Sears to liquidate.
The 125-year-old retailer, which also owns Kmart, filed for bankruptcy in October. At the time, it employed 68,000 workers.
Sears advisors' have until 4:00 p.m. ET on Friday to decide whether ESL's bid is viable. The company and ESL met earlier this week to discuss its bid, without agreeing to a compromise.
The offer has raised a number of flags, the people said. It is short of covering the fees and vendor payment it owes, making it "administratively insolvent."
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https://www.cnbc.com/2019/01/04/eddie-lamperts-bid-for-sears-may-be-short-may-liquidate-without-fix.html