Sears Holdings Corp. Chairman Edward Lampert and his hedge fund ESL Investments Inc. deployed stock buybacks, spinoffs and dividends to rake in billions of dollars while stripping the 126-year-old company of assets and cash, according to an investigation by the retailer’s creditors, the Wall Street Journal reported. In a court filing challenging the planned sale of Sears to Lampert, the unsecured creditors' committee tracked what it claims was a deliberate strategy that began in 2005, shortly after the billionaire took charge of what was then a profitable company. They allege he spun out businesses and collected dividends, and that he made loans and collected interest and fees on them. Creditors want court permission to sue Lampert and his hedge fund. Lampert has repeatedly denied accusations that he steered Sears into ruin for his own benefit. When he made money selling off the company’s real estate and businesses, so did other shareholders, he has said.
