‘old sears’ sues ‘new sears’

by MR Magazine Staff

“The old Sears” — the remnant of the company that sold its stores and other assets in bankruptcy last month — is suing the buyer of those assets, Transform Holdco or “new Sears,” for $57.5 million it says it is owed from the sale, according to court documents filed Monday. The old Sears alleges that Transform Holdco (an entity of Eddie Lampert’s hedge fund) is in violation of its contractual obligations under the asset purchase agreement and automatic stay, and that the funds it’s requesting are being unlawfully withheld. The company says Transform owes it $41.3 million for credit card and cash transactions that occurred before the sale closed, as well as $16.2 million for a portion of February rent, according to the documents. Earlier this month, Transform Holdco requested court mediation to resolve ongoing issues between the two businesses, alleging the old Sears intentionally delayed vendor payments and shortchanged on inventory. In the documents filed this week, the old Sears alleged that request “is nothing more than an attempt to delay turning Estate property over to the Debtors by conflating unrelated post-closing disputes.” Read more at Retail Dive.