Sears’ creditors level blistering charges against Lampert in report
The major creditors of bankrupt Sears Holdings Corp. are not holding back.
In an unusual step, the group filed a 136-page history of what they described as "Sears' tragic descent from giant to ghost” and the role that Sears chairman Eddie Lampert and his ESL hedge fund played in the company’s decline, reported USA Today. The accusations include that Lampert and ESL reduced spending on Sears stores to fund stock repurchases that benefited them, and that such assets as Sears Hometown & Outlet Stores and Lands' End were spun off to their inappropriate enrichment, the report said.
The creditors are looking to persuade a federal judge to force Sears to liquidate instead of accepting the latest offer by Lampert's hedge fund ESL Investments that would the company alive.
The creditors – a group that includes major mall owners – also accused current Sears leaders of having "capitulated" to Lampert by allowing him to "steal the remaining assets" in a bankruptcy auction, USA Today reported.
In a statement, ESL said it "vigorously disputes" the creditors' accusations, calling them "misleading or just flat wrong."
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In an unusual step, the group filed a 136-page history of what they described as "Sears' tragic descent from giant to ghost” and the role that Sears chairman Eddie Lampert and his ESL hedge fund played in the company’s decline, reported USA Today. The accusations include that Lampert and ESL reduced spending on Sears stores to fund stock repurchases that benefited them, and that such assets as Sears Hometown & Outlet Stores and Lands' End were spun off to their inappropriate enrichment, the report said.
The creditors are looking to persuade a federal judge to force Sears to liquidate instead of accepting the latest offer by Lampert's hedge fund ESL Investments that would the company alive.
The creditors – a group that includes major mall owners – also accused current Sears leaders of having "capitulated" to Lampert by allowing him to "steal the remaining assets" in a bankruptcy auction, USA Today reported.
In a statement, ESL said it "vigorously disputes" the creditors' accusations, calling them "misleading or just flat wrong."
Click here to read more.