Sears Chairman Bids $4.6 Billion to Save CompanySears Chairman Bids $4.6 Billion to Save Company

According to RetailDive.com, Lampert’s bid is for Sears, its real estate, brands such as Kenmore and the Sears Auto Services, as outlined in an SEC regulatory filing released on Dec. 6.

Sears filed for bankruptcy in October and has since secured court approval to sell 400 of its best-performing stores and to close 182 of its underperforming locations. Lampert is Sears’ largest shareholder through his own holdings and the holdings of his hedge fund.

The bid offers up to $950 million in cash to be funded with the proceeds of a newly created asset-based credit entity to be obtained by NewCo, $1.8 billion credit bid and $1.1 billion in assumed liabilities pertaining to protection agreements, gift cards and points gathered under the Shop Your Way loyalty program.

The deal would also see Lampert prevent the liquidation of the remaining 500 Sears and Kmart stores. Lampert and Sears' unsecured creditors have clashed in court, and in mid-November, the creditors’ attorneys filed an objection to Sears' plan to sell remaining stores.

Lampert’s bid would need to be approved by creditors and will be competing with other bids from liquidators. All bids are due at the end of December, and an auction is expected to take place mid-January.