Eddie Lampert returns to sue Sears estate demanding a trial and at

first_img Share this storyEddie Lampert returns to sue Sears estate, demanding a trial and at least US$130 Million Tumblr Pinterest Google+ LinkedIn Email Edward Lampert in 2004. Lampert, who lost many millions as Sears Holdings Corp. shares ground down to pennies, kept throwing the company lifelines and is now in pursuit of a return on his investments.Vincent Laforet/The New York Times Josh Saul May 28, 20193:11 PM EDT Filed under News Retail & Marketing Facebook Twitter Bloomberg News 1 Comments Eddie Lampert returns to sue Sears estate, demanding a trial and at least US$130 Million Accuses Sears of breaking agreement that would have brought in ‘hundreds of millions.’ Its bankruptcy plan is in hearing Wednesday More Reddit The bitter fight over the deal that bought Sears Holdings Corp. out of bankruptcy shows no sign of cooling off.Transform Holdco LLC, the unit of Eddie Lampert’s ESL Investments Inc. that acquired the stores and assets of the bankrupt retailer for more than US$5 billion in January, is suing the Sears estate for failing to deliver “hundreds of millions of dollars of assets” called for by the sales agreement.Lampert’s Transform is accusing the Sears estate, a bankrupt shell entity that is winding down under court supervision, of multiple wrongs including breaking the agreement by holding on to the chain’s headquarters in Illinois. The estate is also intentionally delaying payments to vendors and trying to shift US$166 million in accounts payable costs, according to the Transform complaint filed on Saturday. Sears to stay in business after Eddie Lampert’s hedge fund wins bankruptcy auction The story of billionaire Eddie Lampert’s spectacularly bad investment in a dying Sears Eddie Lampert’s plan to save Sears would hand his hedge fund $1 billion “Transform believes that prompt resolution of these matters is important and necessary at this time to allow the bankruptcy court and creditors to consider the Defendants’ proposed Chapter 11 plan,” the complaint states. A hearing to consider the Sears estate’s bankruptcy plan is slated for Wednesday.The allegations mirror those made in court filings from Transform earlier this year. The Sears estate also sued Lampert, U.S. Treasury Secretary Steven Mnuchin and others last month, claiming they wrongly transferred US$2 billion of company assets beyond the reach of creditors in the years leading up to the retailer’s bankruptcy.Transform is making a number of demands, including compensatory damages to be determined at trial but not less than US$130 million, according to the filing.A Transform representative declined to comment. Representatives for the Sears estate didn’t respond to an email seeking comment.Bloomberg.com Comment Join the conversation →last_img read more