Service.com makes an offer for a Sears Home Renovation Company

The most tangible signs to date of sales efforts from Sears Holdings Corp. appeared last week, with motions in favor of selling assets and selling its home improvement business Sears.

The retail giant filed Saturday court documents for the sale of the Longwood, Florida-based unit, centered on a $ 60 million preliminary offer from Service.com Inc. The company SHIP provides renovation services through more than 2,000 independent professionals and contractors.

Court documents indicate that Service.com would pay $ 60 million, subject to adjustment, for the SHIP unit and assume certain responsibilities. The Farmington Hills, Michigan-based bidder, who connects homeowners with professionals for home improvement projects, would receive a 1.5% dissolution fee if he lost at auction.

Interested parties would have until December 11 to match the Service.com offer, the break fee and the 10% deposit. If Sears received a competing bid, it would hold an auction on December 13th.

Judge Robert D. Drain of the US Bankruptcy Court of the Southern District of New York, White Plains, would consider approving the sale on December 18. Sears, in a statement released Saturday, expected the completion of the transaction by early January.

On November 15, Drain is scheduled to review the proposed bidding procedures for the company. At the same hearing, he must consider a request to assist all asset sales and an end-use application for bankruptcy financing.

On October 15, Drain approved the interim use of a $ 1.83 billion senior bankruptcy loan. Reuters announced on Sunday that lenders could reduce new money from the final loan to $ 150 million, in conjunction with a possible $ 450 million loan from Sears president, creditor and shareholder Eddie Lampert, and others. parts.

The motions tabled last week are the first official steps toward what Sears has said is a necessary reduction in its operations.

"As noted above, these Chapter 11 cases must move forward quickly to stem the substantial operating losses that will continue to diminish the value of the debtors' property," the retailer wrote in its motion for appeal proceedings. Overall offers Thursday. "As a result, the rapid completion of sales transactions that will maximize value for debtors' successors and preserve as many jobs as possible is the cornerstone of Chapter 11's debtors strategy."

In its most recent application, Sears announced that it has been marketing SHIP activities since January and that it has received some marks of interest this summer, including from ESL Investments Inc. of Lampert. and Sears' Direct Parts Division for $ 500 million and Sears ceding Kenmore. In August, he offered $ 70 million to SHIP plus a potential payment of $ 10 million.

Sears, however, said it determined that Service.com's offer was the best offer and had made substantial progress in negotiating the deal when the Hoffman Estates-based retail giant in the ########################################################################## 39, Ill., Entered Chapter 11 on October 15. to sell the transaction separately from the rest of its assets because it began to deteriorate since the beginning of the bankruptcy proceedings.

The retailer sought court protection before the impending debt repayment and planned to close 142 stores and reorganize or sell its main sites. The company hopes to get a top – notch offer for about 400 "go ahead" stores by December 15th and hold an auction on February 2nd.

Sears shares, formerly traded on the Nasdaq, are now changing hands in the pink segment of the over-the-counter market under the trading symbol (SHLDQ). On Monday morning, shares were down 19.1 cents, down 3.05%.

A Sears representative and his legal counsel did not immediately return requests for comment.

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