- Sears (OTCPK:SHLDQ) may have staved off liquidation after Chairman Eddie Lampert and his ESL Investments submitted a $4.4B takeover bid for the bankrupt retailer that would keep ~425 stores open.
- ESL says the bid includes a $1.3B financing commitment from Sears’ existing lenders Bank of America (NYSE:BAC) and Citigroup (NYSE:C), as well Royal Bank of Canada, which was not previously a lender, and calls for ESL to forgive or extend maturities on most of Sears’ debt.
- The plan would still need to pass muster with creditors and the bankruptcy court, and Lampert could still be outbid by a group of liquidation firms looking to shut Sears and sell off the pieces.
- Sears told employees earlier today that it is closing 80 Sears and Kmart stores in late March, in addition to the previously announced shutdown of 40 unprofitable stores expected to be completed in February.
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