Friday was the deadline for all the prospective buyers to put an offer in the market so that they are able to buy the bankrupt company.
Sears which has been bankrupt for quite a long time has finally received a bid of $4.4 billion. Sears is owned by Kmart and has been bankrupt since the month of October. Finally, other companies have come out with the proposal of purchasing this company.
Sears which is a 123-year-old company has a total of 68,000 employees when it went bankrupt. Sears which is basically a department store chain has finally won a reprieve from being liquidated this Friday after a bid of $4.4 billion was made by its chairman Eddie Lambert. Eddie Lampert is now trying to buy the retail chain and keep it alive in the market.
It is expected that keeping the business alive will not be an easy task because it has already been bankrupt, but there are people in the market who are willing to give it a try to make the company get back on its feet. Lampert has a hedge fund called the ESL Investments, which helped to process the whole deal.
ESL Investments was the one who placed the bid to the parent company Kmart with a letter which announced the formal submission date. According to CNBC, the offer which came and accepted was on deadline and was received sharply at 4 p.m.
According to the offer which was submitted by Lampert on Friday was through the ESL Investments affiliate called Transform Holdco which has a total 435 of Sears stores. To fund the bid completely, a total of $1.3 billion was made by ESL Investment. The bid, which was offered had offer employment to up to 50,000 associates.
It will be totally up to the company taking over on how the whole operation will be conducted and how many people will be able to keep their jobs. A lot of people are very much happy because this was the only way to save the company.
Lampert has been looking for an opportunity of investment in the retail chain industry for quite a long period of time and this is why it was a perfect opportunity for them to grab this deal at a short notice and bid against the other competitors.