The parent of Sears and Kmart is reportedly set to layoff 250 employees at its Hoffman Estates corporate headquarters and close more stores than previously expected, according to media reports.
Sears Hometown & Outlet Stores said it received a proposal on Friday, April 5, from Transform Holdco LLC, an entity affiliated with the company’s majority stockholder ESL Investments, Inc., to acquire all of the outstanding shares of the company’s common stock not already owned by ESL and its affiliates for a purchase price of $2.25 per share.
Edward Lampert has resigned as chairman of Sears Holdings board of directors just days after an affiliate of his company, ESL Holdings, acquired the retailer out of bankruptcy.
Nearly four months after Sears Holdings filed for Chapter 11 bankruptcy protection, the acquisition of the retailer by ESL Investments is now official.
Sears Holdings officials acknowledged Edward Lampert’s winning bid for the company, subject to bankruptcy court approval.
Three months after Sears Holdings filed for Chapter 11 bankruptcy protection, it appears as if there is life left in the venerable retailer.
Sears Holdings will consider a revised takeover bid from its chairman Edward Lampert just hours after it appeared that the venerable retailer was headed for liquidation, Reuters reported Tuesday afternoon.
Published reports indicated that Sears Holdings plans to ask a bankruptcy court judge to allow the retailer to move ahead with liquidation plans.
Sears Holdings will shutter an additional 80 locations under its Kmart and Sears banners as the retailer continues to operate while its bankruptcy proceedings move forward.
Although spun off in 2012, Sears Hometown & Outlet stores still has operational ties to Sears Holdings and that organization’s bankruptcy has hit the business. However, financially, the company gained some traction in the third quarter as it pushes to reach profitability.
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.
Sears Holdings’ plans to stay in business while looking for a possible buyer was approved by a U.S. Bankruptcy Court on Thursday, November 15, despite objections by some creditors, according to a report by Reuters.
Sears Holdings will close an additional 40 locations in 2019 as the company continues to navigate bankruptcy proceedings.