A U.S. bankruptcy judge approved Sears Chairman Edward Lampert’s $5.2 billion takeover bid of the company, staving off liquidation of the troubled retailer and saving hundreds of stores.
The ruling means thousands of jobs have been saved and 425 stores will remain open for now, according to Reuters. Judge Robert Drain of the U.S. Southern District Court in White Plains, New York, approved the sale Thursday after overruling objections from Sears’ creditors.
Lampert stepped down as CEO of Sears in October when the company filed for bankruptcy, but still remains its chairman and largest shareholder.
Lampert, through his hedge fund, ESL Investments, presented the only bid for the company to keep it afloat, according to Reuters. Lampert’s final offer was $800 million more than his first offer due to an agreement to pay Sear’s bills for merchandise and taxes.
As part of the deal, Lampert will also assume the company’s bankruptcy loans. He was able to use $1.3 billion Sears owed him as part of his offer, which was something some creditors were opposed to, according to Reuters.Recommend0 recommendationsPublished in