Chairman gets another chance to save Sears

CHICAGO — Sears Chairman Edward Lampert’s push to save the bankrupt retailer still has a shot to succeed.

Sears agreed to consider a revised bid from Lampert along with other bids during a bankruptcy auction Monday, Ray Schrock, an attorney for Sears Holdings Corp., told Bankruptcy Judge Robert Drain on Tuesday during a hearing in White Plains, N.Y.

While Lampert has bought more time to revise his bid he must post a $120 million deposit by Wednesday afternoon.

Lampert’s ESL Investments said last month it was prepared to pay $4.4 billion for many of the retailer’s remaining assets, including about 425 Sears and Kmart stores. Transform Holdco, a new entity controlled by ESL, said in a letter to Sears’ investment banker that it believes keeping the retailer in business is the best way to preserve jobs and recover money the retailer owes.

Lampert’s offer was reportedly the only one that sought to rescue the company rather than liquidate it. After several days of talks, Sears agreed to compare a revised version of Lampert’s bid at the bankruptcy auction, Schrock said.

About $17.9 million of the $120 million deposit is nonrefundable and will cover the cost of delaying the company’s liquidation if ESL doesn’t emerge as the winning bidder, Schrock said. If Sears doesn’t accept the $4.4 billion bid, Transform Holdco said it also would bid on some assets.

Any deal would require the Bankruptcy Court’s approval and a hearing to approve the auction results has been set for Jan. 31.