By NCC: Sears is in a hellish spiral and trying to eliminate as much as possible, including one of President Trump's top advisors. The retailer, who is currently under bankruptcy protection, has taken legal action against his former CEO, Eddie Lampert, his hedge fund, ESL Investments, the Treasury Secretary, Steven Mnuchin, and others. Sears sought Chapter 11 protection from bankruptcy six months ago. Mnuchin has served on the Sears board for more than a decade, but resigned as treasury secretary. He reportedly paid $ 26 million into Lampert's hedge fund.
The complaint alleges that the accused "siphoned billions of dollars in business assets" through sales and spin-offs even as the retailer "went bankrupt". Sears says Lampert and his friends misled investors into believing the company's balance sheet was stronger. More than $ 2 billion of assets were directed to Lampert and his hedge fund, the lawsuit says, placing Mnuchin's place in the middle of the fight. Meanwhile, the retailer posted losses of $ 7.1 billion in the three-year period prior to 2014.
For his part, Mnuchin is a former senior executive of Lampert's hedge fund, ESL, which is at the center of the lawsuit. The hedge fund has since retaliated, claiming that it "vigorously disputed" the allegations "and adding:
"As we have said previously, the claims of the debtors are misleading or simply false."
Sears sues former CEO Eddie Lampert for "stealing" assets from the company https://t.co/urLUz5IpVN pic.twitter.com/gwjSoOcRbV
– CNN Business (@CNNBusiness) April 19, 2019
Sears was once the largest retailer in America
Sears' disappearance lasted several years during which the company closed hundreds of sites. It's a tough fall for a company whose past glory had already been singled out as the largest retailer in America. They started trading on the NYSE before the Great Depression and soon grew into household appliances. Finally, they merged with Kmart. Lampert took over the CEO position in 2013 and his hedge fund lent billions of dollars to Sears. But finally, superstores, including Home Depot, have dethroned Sears and their sales have been reduced by 60%. The future of the company has been questioned and many have blamed Lampert. At the beginning of the year, Lampert won first prize and won an offer on the real estate of the company and some of its brands.
As for Mnuchin, the Trump administration is no stranger to litigation and controversy. President Trump thought the retailer had been "mismanaged" prior to the tabling of Chapter 11, which, rather than being directed against Mnuchin, could have been intended for the former roommate of the Treasury Secretary, Lampert. .
Another Sears IPO could be considered
The speculative funds of Lampert emerge with its bold plans for the company after bankruptcy, which consist of smaller stores and less clothing. He told the Wall Street Journal:
"Our goal is to continue to reduce the size of our stores. If I had my abilities, I would rather be bigger than smaller. We still have enough critical mass. "
Another Sears IPO is not out of the question.