Sears Holdings Corp. is considering offers from liquidators that would result in the closure of all its stores while Chairman Edward Lampert and Cyrus Capital Partners prepare a bid that would keep the bankrupt retailer in business, WSJ Pro Bankruptcy reported. Lampert, who believes a slimmed-down Sears can emerge from bankruptcy, and Cyrus are expected to make an offer for roughly 500 of Sears’s best-performing stores. The company’s advisers, however, have contacted a number of liquidation firms seeking offers to shut down Sears’s stores and sell off the company’s merchandise in case the takeover offer falls apart. Lampert’s hedge fund, ESL Investments Inc., and Cyrus are expected to place a credit bid, meaning they would forgive some Sears debt in return for control of the company. However, that offer would likely include cash as well as the forgiveness of debt, according to sources. Bids are due next month and a decision on the sale is expected early in the new year. Read more.
In related news, Sears is identifying 505 stores and leases that would be sold as a group early next year in an attempt to keep the brand alive, the Dallas Morning News reported. The 132-year-old retailer said that it is reducing debt and operating costs through its court-supervised reorganization, but it also needs help from shopping center owners. Sears is asking landlords for rent reductions to help it keep profitable stores open. It's not clear what will happen to stores that are open but not on the sale list. Sears has already received bankruptcy court approval to close 190 stores. Read more.
