Sears Canada shareholders intend to table offer for company
13 JUL 2017
Sears Canada (TSE:SCC) executives intend to table an offer for a portion of or all of the insolvent Toronto, Ontario-based retail chain, reported The Globe and Mail on 13 July.
An item from the newspaper's Report on Business section, which cited a court document filed by the company's insolvency monitor, indicated that north of 20 groups have signed non-disclosure pacts connected to a potential takeover of Sears Canada. The company was, on 22 June, granted court protection from creditors.
According to the report, Sears Canada's majority shareholders in the U.S., ESL Partners -- an organization run by Sears Holdings CEO Edward Lampert -- and Fairholme Capital Management are also in talks to sign non-disclosure pacts as part of the sale process.
Meanwhile, a press release on 10 July confirmed that ESL Partners, Edward S. Lampert and certain affiliated entities announced that ESL and Fairholme Capital Management have engaged Canadian legal counsel to represent them in connection with Sears Canada's proceedings under the Companies' Creditors Arrangement Act. In connection with such engagement, ESL and Fairholme are evaluating, discussing and considering a potential negotiated transaction with the Issuer and its subsidiaries.
Sears Canada's market cap is CAD 63.1m (USD 49.4m).