As predicted, Eddie Lampert has succeeded in driving Sears into the ground:
In announcing the news, Sears said Edward Lampert stepped down as CEO effective immediately and remains chairman.
Sears and Kmart stores and online platforms will remain open, though the company also said it would close 142 unprofitable stores near yearend, with liquidation sales at those locations "expected to begin shortly."
The company said it has commitments for $300 million of debtor-in-possession financing from its senior secured asset-based revolving lenders and is negotiating a $300 million subordinated DIP financing with ESL Investments, where Lampert is chairman and CEO. The hedge fund held about $2.5 billion in Sears debt as of September, the result of multiple attempts to keep the chain afloat.
Negotiations over the fate of the fallen company continued over the past week, as it faced a critical $134 million of debt that is maturing today.
So, after killing the 132-year-old company, Lampert stands to make millions from its demise. And 68,000 people will soon be out of work.
Update: Crain's has an obituary.