Eddie Lampert, Sears’ CEO is proposing to buy the Kenmore brand as well as some other assets from the troubled retailer. Lampert’s offer letter to the company because the company hasn’t been able to find another buyer for the assets in the two years they’ve been on the market.
As per the statements in the offer letter, “Kenmore is a notable brand with considerable esteem, and Sears ought to forcefully seek after a divestiture of all, or a segment of, Kenmore in the close term.” Further, it says, “Seeking after these divestitures now will show the estimation of Sears’ arrangement of benefits, will give a critical wellspring of liquidity to Sears and could maintain a strategic distance from any disintegration in the estimation of such resources.”
The Kenmore brand offer is from ESL Investment, the hedge fund owned by Lampert and ESL is also a major lender to Sears.
ESL said, “We keep on seeing an incentive in Sears and its fundamental resources and accept firmly that with a suitable runway Sears will have the capacity to finish its change to react to the testing retail condition.”
Lampart’s offer letter additionally communicates enthusiasm for getting a few or even the greater part of Sears’ staying land and in addition its home administration and parts organizations. It doesn’t put a dollar figure on what he will pay.
Sears said, “The letter from ESL will be reviewed and considered by a committee of independent directors of the company’s board.” Moreover, it says, “There can be no assurance that this letter will result in a transaction or on what terms any transaction may occur.”