business news in context, analysis with attitude

Bloomberg Businessweek has a good piece about what might be next for Sears, which has been rescued this week from liquidation - whether or not that is a good thing - by its chairman, Eddie Lampert, for $5.2 billion.

An excerpt:

“Allies say Lampert saved an American icon and the jobs of its almost 50,000 workers. Others say he simply delayed its inevitable death. Still others say he had a compelling personal motive to stay involved after creditors threatened legal actions over Sears’s asset sales during the years he led it.

“Besides having to offer more than $150 million over his earlier bid, Lampert had to give up a key bargaining chip to win the bidding. He’d been asking unsecured creditors to indemnify him from possible legal action over what the creditors allege were conflicts of interest in the stripping of assets from a failing company.”

One conclusion of the piece - Lampert may have saved Sears from death, but he is likely to spend a lot of time in court proving that this was positive for the company’s creditors.

You can read the story here.
KC's View: