NEW YORK, Jan. 17 (Xinhua) -- American chain of department stores Sears Holdings Corporation announced on Thursday that U.S. hedge fund ESL Investments was selected as the winning bidder in the company's auction.
Subject to bankruptcy court approval, the privately owned ESL will acquire substantially all of the company's assets, including the "Go Forward Stores" on a going-concern basis for approximately 5.2 billion U.S. dollars, Sears said in a public statement.
The 126-year-old integrated retailer company, which owns Kmart and its flagship Sears stores, filed for bankruptcy protection last October, in a bid to avoid a total shutdown of all its stores in early 2019, amid fierce competition from domestic rivals like Amazon, Walmart and Target.
Shares of Sears rose more than 5.5 percent shortly after the announcement around midday.
"Importantly, the consummation of the transaction would preserve employment for tens of thousands of associates, as well as the relationships with many vendors and suppliers who provide Sears with goods and services," said the Restructuring Committee of the Board of Directors of the company.
Sears had roughly 700 stores in last October, a drastic fall from the around 2,000 stores five years ago. Once the transaction is completed, around 425 Sears and Kmart stores across the country will remain open, which will secure jobs for 45,000 people.
The deal still needs approval from the U.S. Bankruptcy Court for the Southern District of New York. The approval hearing for the sale is scheduled for Feb. 1. Once the approval hearing gets passed, the transaction is expected to close on around Feb. 8.
