Sears making backup plan to liquidate: What it means for local stores

The Sears at the Mall at Fairfield Commons is already closed. TY GREENLEES / STAFF

The Sears at the Mall at Fairfield Commons is already closed. TY GREENLEES / STAFF

Sears is making backup plans to liquidate if its former CEO’s last attempt to save the company doesn’t pull through, several media outlets are reporting.

The 126-year-old retailer filed for bankruptcy in October. Chairman and former CEO Eddie Lampert and hedge fund ESL Investments was the only bidder looking to save the company when bids came due Dec. 28

His original $4.4 billion offer for Sears remaining assets, including 425 stores, would save 50,000 employees. A secondary bid filed in court last week would keep 250 stores open, Lampert’s fallback if the full plan isn’t approved.

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Even if Sears escapes liquidation, all local stores will be closed by the end of March. They were not included in the final offer.

People close to the matter told Reuters negotiations have extended beyond the Friday deadline and Lampert has until Tuesday to address issues with his bid. Sears has lined up Abacus Advisory Group LLC to liquidate the chains tools, appliances and store fixtures if negotiations are unsuccessful.

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Full liquidation would kill roughly 68,000 jobs nationwide.

The Springfield Sears was the latest area Sears to announces its closure, with plans to liquidate by March. The Piqua store will close in February and both the Mall and Fairfield Commons and Dayton Mall stores closed last year.

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