Sears Lawsuit: $18.3 Million Settlement Awarded To Bankrupt Retailer’s Estate

The lawsuit between the estate of Sears Holding and new owners Transform Holdco has been settled for about $18.3 million.

The two companies were in disagreement over certain terms of the sale of the assets of the Sears and Kmart stores Transform Holdco purchased in early 2019, the Chicago Tribune reported.

Former Sears chairman and CEO Eddie Lampert’s hedge fund purchased the assets of the company for $5.2 billion last year after Sears Holdings filed for bankruptcy in October 2018.

Under the newly formed Transform Holdco, the company picked up 425 Sears and Kmart stores, which it claimed in the lawsuit that Sears Holdings did not turn over the inventory it promised as part of the deal between the companies, according to the news outlet.

Sears Holdings contended in the suit that Transform Holdco reportedly did not turn over $57.5 million.

As part of the settlement, Transform Holdco agreed to pay Sears Holding about $18.3 million, with about $13 million of the settlement to be paid in cash, which could go to outstanding creditors still owed after the company’s bankruptcy, the Tribune said.

Under the ownership of Transform Holdco, several Sears and Kmart locations have closed with another 96 stores slated to close in February. Sears Holdings has also been plagued with troubles as it reportedly will cut 195 workers from its corporate headquarters in January.