Reuters reported the restructuring team winding up the Sears bankruptcy estate filed suit against former chair Eddie Lampbert, claiming his hedge fund illegally drew billions of dollars from the company before it entered Chapter 11.
According to the Associated Press, U.S. Bankruptcy Judge Robert Drain approved the $5.2 billion plan proposed by Sears chairman Eddie Lampert to save 425 stores and 45,000 jobs under the iconic brand.
Reuters has reported that ESL Investments, the hedge fund run by Sears’ former CEO Eddie Lampert and the store’s largest creditor, has forwarded a $4.6 billion bid to rescue 500 Sears stores from liquidation.
Reuters reported two Sears Holdings’ board directors have hired investment bank Evercore to examine deals led by the company’s former CEO Eddie Lampert.
Reuters reported that Sears chairman Eddie Lampert is holding discussions with Cyrus Capital Partners to share the $30 million financing to support the company’s Chapter 11 effort.
Sears Holdings’ board of directors received a letter from ESL Investments, the hedge fund led by the company’s Chairman and CEO Edward Lampert, proposing to buy the company’s Kenmore appliance division, Sears Home Services and PartsDirect.
Business Insider reported that Sears CEO Eddie Lampert, through his hedge fund ESL Investments, agreed to provide Sears with a further $200 million credit line.
Sears is closing eight stories and 35 Kmart stores, according to a blog post by Sears CEO Eddie Lampert. Sears also modified its credit agreement to include a line of credit of up to $500 million.
Bloomberg reported Eddie Lampert’s $400 million loan to Sears Holdings is enough to keep the retailer going for three months, but it will need 10 times that capital to survive beyond then.