Sears Holdings Corp Chief Executive Officer Eddie Lampert is exploring a bid for some of the cash-strapped U.S. retailer`s businesses and real estate once it files for bankruptcy as an alternative to a traditional court-supervised reorganization, people familiar with the matter said on Thursday.
Under this scenario, the 125-year-old department store operator, once the world`s largest retailer, would initially avoid an outright liquidation, but would have to navigate the bankruptcy process without some of its key assets.
Lampert, who is Sears` biggest shareholder and lender, is considering bidding for its Kenmore appliances brand and home services business in addition to some real estate, the sources said.
Sears is also weighing a traditional bankruptcy reorganization, and no final decisions have been made, the sources added.
Lampert had already offered $480 million for the Kenmore and home services businesses as part of an out-of-court rescue plan, and is mulling trying to buy them through bankruptcy auctions under this option, the sources said. The auctions are executed under Section 363 of the U.S. bankruptcy code.
The exact assets that Lampert is thinking about purchasing in bankruptcy remain in flux, the sources said.
Lampert could help finance his bids for the assets by forgiving some Sears` debt, as opposed to putting in more cash, one source said.
Sears is still negotiating potential financing to keep it afloat while under bankruptcy protection after discussions with banks on Wednesday night failed to result in an agreement, the sources said.
Another meeting with potential financing sources was planned for Thursday, the sources added.
The sources declined to be identified because the deliberations are confidential. A Lampert spokesman declined to comment while a Sears spokesman did not immediately respond to a request for comment.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
![https://www.zeebiz.com/markets/stocks/photo-gallery-this-tata-group-stock-turned-every-rs-10000-of-investment-into-rs-11300-in-just-a-week-investors-richer-by-42722-crore-rupees-any-guesses-share-market-news-304023](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307143-tradingpexels.jpg?itok=rw4R7EfH)
A Tata group stock just turned every Rs 10,000 of investment into Rs 11,300 in just a week, investors richer by Rs 42,722 crore; any guesses?
![https://www.zeebiz.com/markets/stocks/photo-gallery-large-cap-midcap-stocks-shares-to-buy-for-long-term-check-out-targets-nifty-sensex-303617](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/25/306716-stockks.jpg?itok=KJTrFUIK)
Stocks to buy for long term: Analysts suggest buying these 5 largecap, 4 midcap scrips; check out targets
![https://www.zeebiz.com/personal-finance/photo-gallery-nps-retirement-planning-budget-2024-nirmala-sitharaman-announcement-how-nps-rulebook-change-can-increase-corpus-income-and-monthly-pension-by-40-compound-return-303984](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307102-indian-currency-pixabay-take.jpg?itok=kN21EW-9)
How your NPS retirement corpus and monthly pension can jump by 40% after this rule change; get details
![https://www.zeebiz.com/personal-finance/photo-gallery-senior-citizen-savings-scheme-scss-2024-interest-rate-calculator-post-office-how-to-get-inr-rs-50000-interest-retirement-planning-guaranteed-return-maturity-amount-small-savings-303930](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307042-fd-interest-file.jpg?itok=45ZbBRWM)
How much investment do you need in this senior citizen scheme to get Rs 50,000 quarterly interest? Know here
10:15 PM IST