We could be saying goodbye to Sears sooner than we think. The company is preparing itself for liquidation after their chairman Eddie Lampert's bid to buy the stores out of bankruptcy fell shorts of bankers qualifications. The news was first reported by Bloomberg.
Last Friday an emergency meeting was called by Sears representatives with liquidation firms and other financial advisers after Lampert's 4.4 billion dollar bid was rejected. If Sears proceeds with the liquidation sale it could go through as early as next month.
The liquidation of Sears could be detrimental to America's struggling retail sector. As stores continue to try and compete with Amazon and consumers changing spending habits, Sears could prove to be the biggest fatality in America after Toys 'R Us.
The only last ditch effort for the retailer is for Lampert to rally an improved bid before a status hearing on Tuesday. He also has a plan to purchase some of Sears holdings including real estate and Sears' brands.
Sears Holdings also includes retail chain K-Mart. Last year the company entered Chapter 11 bankruptcy with over 11 billion dollars in debt. Sears is hoping to be able to restructure their company to save 425 stores and 50,000 jobs. Unfortunately, unless Lampert can come up with a heavily reorganized bid, liquidation is likely.