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Sears sues Lampert for asset stripping

Yoel Minkoff,

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Apr. 19, 2019 3:46 AM ET|About: Sears Holdings Corporation (SHLDQ)|By: Yoel Minkoff, SA News Editor

Sears Holdings (OTCPK:SHLDQ) is suing longtime former Chairman Eddie Lampert, his hedge fund ESL Investments and others like Treasury Secretary Steven Mnuchin, claiming they illegally siphoned billions of dollars of assets from the retailer before it went bankrupt.

It follows the billionaire’s $5.2B purchase in February of most Sears assets, including the DieHard and Kenmore brands, after a bankruptcy auction.

The complaint seeks the repayment of "billions of dollars of value looted from Sears," including while it was in what Lampert would later call a "death spiral" where it sold core assets to meet daily expenses with no real plan for becoming profitable.