According to a Bloomberg report on Wednesday, struggling retailer Sears’ chairman Eddie Lampert’s ESL Investments is partnering with Cyrus Capital Partners in a bid for the company.
Court filings have revealed that Lampert has said his hedge fund, ESL Investments, is planning to buy roughly 500 of Sears’ stores, helping it to emerge from bankruptcy.
According to the Bloomberg report, which cited sources familiar with the situation, the prospective suitors may offer to swap debt they hold for ownership of the stores in a so-called credit bid.
A spokesperson for ESL and for a spokesperson for Sears Holdings declined to comment to CNBC.
Disclaimer: We have no position in Sears Holdings Corp. (OTCMKTS: SHLDQ) and have not been compensated for this article.