Sears is getting slammed after report says it is set to announce its liquidation plans
- Sears filed for Chapter 11 bankruptcy in October.
- Chairman Eddie Lampert had put forward a $4.4 billion bid to save Sears by buying it out of bankruptcy through his hedge fund ESL Investments.
- The iconic American retailer has rejected Lampert's bid and is set to announce its liquidation plans Tuesday morning, CNBC reported.
- Lampert still has a chance to present details of his offer and make the case for renewing efforts to save the retailer, according to Reuters.
Sears tanked 31.4% to $0.21 a share following a report stating it will announce its liquidation plans Tuesday morning.
Sears Holdings has rejected Chairman Eddie Lampert's bid to save the 126-year-old company, setting the storied retailer with more than 50,000 employees on a path to liquidation, CNBC reported, citing sources familiar with the matter. The retailer plans to announce its liquidation Tuesday morning, the sources added.
The iconic American retailer filed for Chapter 11 bankruptcy in October, saying that it would close hundreds of stores. Lampert had put forward a $4.4 billion bid to save Sears by buying it out of bankruptcy through his hedge fund ESL Investments, but he could not reach an agreement with Sears' advisors, who believe the chairman's offer is insufficient, according to CNBC sources.
According to Reuters, Sears will ask a bankruptcy judge on Tuesday morning if it can proceed with liquidation. Meanwhile, Lampert also plans to present details of his offer and make the case for renewing efforts to save Sears in bankruptcy court on Tuesday.
US Bankruptcy Judge Robert Drain in the Southern District of New York, who is presiding over the case, could decide to give Lampert more time to improve his bid, the Reuters sources said, adding that a bankruptcy auction for Sears' assets is not due until January 14.
Sears was down nearly 94% in the past year.
