Sears to stay in business after Eddie Lampert’s hedge fund wins bankruptcy auction
Eddie Lampert, the dogged billionaire who’s hitched his career and reputation to a fading American retail icon, will get another chance at reviving Sears Holdings Corp.
In an agreement reached in the wee hours of Wednesday in New York, Lampert won a bankruptcy auction with a plan that will keep the bankrupt company in business and save thousands of jobs, according to people with knowledge of the discussions. The agreement still needs to be approved by the U.S. judge overseeing the bankruptcy.
Lampert’s offer prevailed over competing proposals from liquidators that would have forced the 126-year-old department-store chain to shut down and sell its assets. The bid is valued at over US$5 billion and represents an improvement of more than US$150 million over the hedge fund manager’s previous offer, said the people, who asked not to be identified because the talks are confidential.