NEW YORK: Sears Holdings Corp is preparing to potentially wind down the iconic retailer after chairman Eddie Lampert’s bid to buy several hundred stores out of bankruptcy fell short of bankers’ qualifications, according to people with knowledge of the matter.
The retailer started laying the groundwork for a liquidation after a series of meetings last Friday in which its advisers weighed the merits of a US$4.4bil bid by Lampert’s hedge fund to buy Sears as a going concern, said the people, who asked not to be identified because the discussions are private.
While Lampert’s ESL Investments has failed to convince the bankers of the viability of its bid, it could still make last-minute improvements before a status hearing tomorrow.
Lampert also has outlined a back-up plan in which ESL would pursue the purchase of some of Sears’s parts, including real estate and intellectual property, such as its brand. — Bloomberg