Sears creditors challenge ESL's winning bid
A group of Sears creditors are challenging Chairman Eddie Lampert's hedge fund's winning bid to buy the business in a bankruptcy auction and wants to sue the billionaire and his hedge fund.
That's according to a court filing Thursday in which the creditors contend that Lampert has painted himself as the savior of the company, but has instead made a series of moves over the years that have benefited himself and his hedge fund ESL.
Sears confirmed early Thursday that ESL had won tentative approval for a $5.2 billion plan to buy 425 stores and the rest of the company's assets, staving off a liquidation of the iconic brand.
The move would preserve 45,000 jobs, but it is still subject to approval by a bankruptcy judge on Feb. 1.
ESL says in a statement that all transactions were done in good faith and were also approved by the company's board, including independent directors.
A spokesman for Sears Holding Corp. declined to comment.
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