Sears Holdings Reaches a $5 Billion Deal with Chairman Eddie Lampert

According to a source close to the situation, struggling retailer Sears Holdings has reached a roughly $5 billion deal with its former CEO and current chairman Eddie Lampert.

As part of the deal, Sears and 400 stores would be kept in operation says the source.

While this may seem like good news, Sears employees aren’t too thrilled. “Eddie Lampert didn’t save Sears, he ran it into the ground. No one thinks their job is safe under his leadership,” Lily Wang, deputy director of United for Respect’s Rise Up Retail said to FOX Business.

“Ten of thousands of laid off employees are doubling down on their demand for Lampert to honor his commitment to pay severance and to also set up a hardship fund to provide immediate support to all families impacted by the bankruptcy,” the group said on Wednesday.

According to the group, Lampert took control of Sears in 2005, and has repeatedly sold off Sears’ most profitable assets to corporations that he controls and “has major stakes in,” earning him more than $1 billion in the process.

“Under Lampert’s control, Sears has shelled out $6 billion in stock buybacks to pay out to investors and shareholders instead of paying down its debt or investing in its store infrastructure and the workforce,” the group explained.

Lampert’s bid had been reportedly approved on Wednesday by an independent board of advisers, and includes more than $40 million in severance pay for employees.

Disclaimer: We have no position in Sears Holdings Corp. (OTCMKTS: SHLDQ) and have not been compensated for this article.