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Senior Sears executive resigns as fate of Lampert's bid remains uncertain

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Senior Sears executive resigns as fate of Lampert's bid remains uncertain

Sears Holdings Corp. said Perry Dean Schwartz, one of seven members of the retailer's senior management team, resigned from the company, effective Jan. 4, to pursue other business opportunities.

Schwartz was president of the Hoffman Estates, Ill.-based company's hardlines business, which consists of appliances, electronics, and home improvement products.

He was appointed to the role in April 2017 following a long career at the company and its predecessor. The executive's departure comes as the company considers a $4.4 billion bid to keep itself afloat.

The bid was submitted by its Chairman Eddie Lampert through his hedge fund, ESL Investments Inc., to help the struggling department store chain avoid liquidation.

Advisers to Sears Holdings, which filed for bankruptcy protection in October 2018, have questions regarding Lampert's bid, CNBC reported Jan. 4, citing unnamed sources.

The concerns raised by the advisers include the offer's inability to cover fees and vendor payments as well as about $1.8 billion Lampert offered in the form of forgoing debt owed to ESL.

The company's financial advisers had until 4:00 p.m. ET, on Jan. 4 to sign off on the viability of ESL's bid, according to the news outlet.

Sears' advisers were also unsure whether the bid can past muster with the bankruptcy judge, whom the company was supposed to meet with on Jan. 4, CNBC added.

The company has not yet formally announced its decision regarding the bid.