Former Sears CEO Eddie Lampert has reached a deal with his creditors to get Sears out of bankruptcy for just $179 million, which would free the billionaire hedge fund mogul of any liabilities associated with the epic bankruptcy are.
After almost four years, the biggest and longest-running bankruptcy could end if a federal bankruptcy judge approves a proposed settlement between the legendary retailer’s former CEO and the company’s creditors.
Lampert and Sears’ creditors — including sellers who lost millions of dollars when Sears filed for Chapter 11 bankruptcy protection in October 2018 — along with the company’s professional advisers, landlords and investors, agreed to a $179 million settlement, according to court documents to.
Lampert has been accused of bankrupting the multi-billion dollar company, which also owned Kmart, and looting its assets during the four-year saga.
Eddie Lampert was the former CEO of Sears and its largest shareholder.AP
Today, only a handful of Sears stores remain. But it was once considered the largest retailer in the world. Together with Kmart there were about 6,000 stores in total.
The settlement is “a handout of what I believe Lampert and his associates should be paying,” said Mark Cohen, director of retail studies at Columbia University Business School and former CEO of Sears Canada.
Lampert was known for selling the retailer’s properties to companies he controlled and then collecting rent from the stores.