'This is all a sham': Ex-Sears executive says the CEO's new bid to revive Sears will kill off the 125-year-old retailer once and for all (SHLD)
AP
- Sears CEO Eddie Lampert wants to buy Sears' Kenmore brand, its home-improvement business, its Parts Direct division, and some or all of the company's real estate through his hedge fund, ESL Investments.
- One of Lampert's critics, former Sears Canada CEO Mark Cohen, says the deal is a "sham" and would kill off the 125-year-old retailer by stripping Sears of some of its last remaining brands and real estate.
- "They keep pulling more rabbits out of the hat to keep this thing alive," said Larry Perkins, the CEO of the consulting firm SierraConstellation Partners. "At some point, you run out of rabbits, and when you run out of rabbits, it really is over."
- ESL Investments said the deal would "enable Sears to improve its debt profile and liquidity position, creating the runway to help continue its transformation."
Sears CEO Eddie Lampert wants to buy the retailer's most valuable assets — including its Kenmore brand — in a massive deal with his hedge fund, ESL Investments.
He made the offer in a letter to Sears' board of directors, saying the deal would extend Sears' timeline to turn around its business by providing a much-needed infusion of cash to pay off its debts. In addition to the Kenmore appliance brand, Lampert is proposing that his hedge fund buy Sears' home-improvement business, Parts Direct division, and even the company's real estate.
One of Lampert's most outspoken critics says such a deal would kill off the 125-year-old retailer by stripping the company of its most valuable brands and real estate, leaving it with nothing but a failing retail business. See the rest of the story at Business Insider
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See Also:
- Sears CEO Eddie Lampert proposes massive deal to buy the struggling retailer's Kenmore brand, real estate, and other assets
- Sears is closing 24 stores in 17 states — here's the list
- 50 haunting photos of abandoned shopping malls across America
SEE ALSO: Sears is closing 24 stores in 17 states — here's the list