Thursday, May 30, 2019

'Old Sears' and 'new Sears' fighting in court again

Retail Dive
The two parties involved in the sale of the salvaged remains of Sears Holdings' operations are at war in bankruptcy court, accusing each other of breaching the sale agreement signed earlier this year. Last week, the former holding company for Sears stores alleged in court papers that the new Sears, comprising of more than 400 remaining stores, failed to take on tens of millions of dollars in liabilities and to pay cash owed to it under the sale contract, among other alleged breaches.

The new Sears, dubbed Transform Holdco – a subsidiary of ESL Investments, the hedge fund run by former Sears Holdings CEO Eddie Lampert – has filed its own complaint against the old Sears company, alleging that it failed to deliver inventory, receivables, property and other assets, along with other contract violations. . . . more