Sears May Be Saved Again Helping Thousands to Keep Their Jobs

Thousands of people who rely on their employment with Sears may be feeling very thankful right now that the struggling 126-year old company might be saved again.

A bankruptcy judge has given Sears Chairman Eddie Lampert another chance to buy the company out of bankruptcy this week.

It was on Tuesday that Sears had wanted to tell the court that it had rejected Lampert’s $4.4 billion offer to buy the retailer. According to Sears’ advisers, the bid was insufficent to cover the fees and vendor payment it owes and was deemed “administratively insolvent.”

The judge however decided to give Lampert’s hedge fund, ESL Investments more time to pay. The hedge fund will have to pay a $120 million deposit by 4:00 P.M. on Wednesday. An auction will then be held on January 14th where Sears will compare Lampert’s offer against liquidators.

Attorneys for Sears had announced it had accepted a revised bid from ESL Investments where 425 of the stores could still stay open.

“Our going-concern bid provides the best path forward for the company, the best option to save tens of thousands of jobs and is superior for all of Sears’ stakeholders to the alternative of a complete liquidation,” according to ESL.

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