Sears Strikes 11th-Hour Deal to Avoid Shutting Down

It's not quite the end of an era, but things will likely never be the same for Sears. 

Following two delays at a morning hearing in bankruptcy court on Tuesday, attorneys for Sears Holdings announced that the company had accepted a revised bid from a hedge fund controlled by the chairman and former CEO of Sears, Eddie Lampert. The 11th-hour agreement will keep Sears and Kmart stores open for the foreseeable future. 

Sears Holdings had initially rejected Chairman Eddie Lampert's offer to save the 126-year-old retailer, but the deal announced Tuesday afternoon gives the company a chance to keep the doors open on 425 of its stores. 

The $4.4 billion offered by Lampert's hedge fund won't complete the sale. Instead, it starts an auction process that is due to be completed by Jan. 14. It's still possible that those who wish to shut Sears down will bid more for the assets that the former CEO is offering. 

Early reports on Tuesday indicated that the Sears had decided to ask the court for permission to start shutting down their stores. 

Sears filed for bankruptcy back in October, but said they hoped to use the process to stay in business. 

The bid includes plans to offer jobs to 50,000 Sears and Kmart employees. A judge will still need to approve the agreement. Lampert's bid means he has until Wednesday afternoon to make a $120 million cash payment. 

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