Business

Sears gets another reprieve from liquidation


NEW YORK (AP) — Sears received another possible lifeline Tuesday when the company's chairman and largest shareholder promised to line up the necessary financing to keep the struggling department store chain afloat.


The reprieve came after what Sears lawyers described to a bankruptcy judge in New York as "round-the-clock" negotiations following the company board's initial rejection of Eddie Lampert's proposal, which sought to preserve 425 stores and 50,000 workers.


In a statement emailed to The Associated Press, ESL said it "appreciates the encouragement from the court and the constructive engagement of the debtors as we work to formalize our going concern proposal so that it can be evaluated at the upcoming auction."


A bankruptcy judge will then weigh different scenarios including the value of retaining 50,000 jobs, according to David Wander, an attorney at Davidoff Hutcher & Citron, which represents two of Sears vendors.


Sears, which began as mail order watch business 132 years ago and grew to be the largest retailer in the world, has been in a slow death spiral, hobbled by the Great Recession and outmatched by competitors like Amazon and Walmart


Under Lampert, Sears has bought time over the years by spinning off stores and putting on the block the brands that had grown synonymous with the company, such as Craftsman.






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