Sears CEO pushes plan to prevent bankruptcy
Sears CEO Eddie Lampert is suggesting a last-ditch effort to prevent a bankruptcy for the embattled department store chain, according to a proposal by major shareholder ESL Partners, Lampert's hedge fund.
Why it matters: A debt payment is looming, and Sears is tight on cash. Lampert, whose hedge fund also owns Sears's debt, has a lot on the line should Sears go bankrupt.
The details of the proposal:
- Sell off $1.75 billion in assets (including Sears Home Services and Kenmore).
- Offload $1.5 billion worth of real estate.
- Ask lenders to swap loans for equity stakes.
- If approved by the board, the plan would cut Sears's $5 billion debt load to about $1.2 billion.
Go deeper: The cannibal of Sears.