A hedge fund run by Sears Holdings chairman Edward Lampert and Cyrus Capital Partners are reportedly working together to prepare a bid to take over the bankrupt retail chain.
According to a report from Bloomberg, the deal may include the swapping of debt for ownership of the stores. Any takeover bid would require the approval of the bankruptcy court.
Published reports have said that Lampert believes the retailer has a future operating as a 500 store chain. Creditors, however, have called for the liquidation of the company.
Sears filed for Chapter 11 bankruptcy protection in mid-October and since has announced plans to shutter more than 180 stores combined from its Sears and Kmart brands.