"Sears Holdings Corp will ask a bankruptcy judge on Tuesday if it can proceed with liquidation after it could not reach an agreement on Chairman Edward Lampert's $4.4 billion takeover bid, casting doubt on the survival of the 126-year-old USA department store", Reuters exclusively reported Tuesday, citing sources familiar with the matter. It is still possible that those wishing to shutdown the company will bid more for the assets than Lampert is offering.More news: No, your AT&T phone doesn't have 5G yet
If Sears doesn't accept the bid, it will likely have to ask the court for permission to start shutting down the business. That represent an increase of more than 125 percent from the daily low of $0.153 which they set on the news that Sears would reject the takeover bid from Lampert and ESL. The once-dominant retailer has about 500 stores still in operation.
The struggling retailer, which filed for bankruptcy in October, has been trying for years to keep afloat, announcing various rounds of layoffs and stores closures amid crippling sales declines due to a consumer shift to online shopping. Creditors, though, would prefer that Sears liquidate, as Lampert - the firm's former CEO - made a variety of controversial moves during his tenure as chief executive and they would prefer to cut their losses. By 2016 the combined retail venture Sears Holdings was locked in a downward spiral of falling revenue and rising debt, with customers defecting from stores considered outdated and stocked with unappealing merchandise. Lampert, who retains the title of chairman, and his ESL own just under half of the Hoffman Estates, Illinois, company, according to FactSet.More news: Venom Sequel Moving Forward, Woody Harrelson to Return as Carnage
In a regulatory filing, Sears announced the departure of one of its top executives.More news: Intel showcases technology for next era of computing at CES 2019