Former Sears CEO Eddie Lampert has reached a settlement with its creditors, bringing Sears just short of bankruptcy. With $179 million to be saved, the billionaire hedge fund mogul will be freed of the debt associated with the epic bankruptcy.
Largest and longest bankruptcy, lasting nearly four years, ends if bankruptcy judge approves proposed settlement between iconic retailer's ex-CEO and company's creditors There is a possibility.
Lampert and Sears creditors —vendors who lost millionswhen Sears filed for Chapter 11 protection in October 2018 Including — the company's professional advisers, landlords, and investors were awarded a $179 million settlement, according to court documents.
Lampert bankrupted his billion dollar company, which also owned Kmart, andlooted its assets into his four Accused in the story of the year.
Only a handful of Sears stores remain today. However, it was once considered the largest retailer in the world. Combined with K Mart, there are about 6,000 stores.
The settlement "is just a fraction of what I believe Lampert and his associates should be asked to pay," said the director of retail studies at Columbia University Business School. Marc Cohen, former CEO of Sears Canada, said.
Lampert will transfer the retailer's real estate assets to the entities he manages. It was known for selling and collecting rent from stores.
