Eddie Lampert’s hedge fund preparing an improved offer to keep Sears alive: sources

A sign is displayed on a Sears store in Hackensack, N.J., Tuesday, Jan. 8, 2019Seth Wenig/AP Photo

Eddie Lampert’s ESL Investments hedge fund is planning to submit an improved offer to keep Sears Holdings Corp. in business.

Advisers for the hedge fund are drafting a bid that would satisfy conditions set in U.S. bankruptcy court on Tuesday, said a person with knowledge of the matter. The revisions include committing more capital, the person said.

ESL is planning to disclose its intentions in a regulatory filing, said the person, who wasn’t authorized to comment publicly. Lampert and ESL face a court deadline later Wednesday to submit a revised offer. The Sears chairman and former chief executive officer needs to put up US$120 million by Wednesday if he wants to take part in an auction against other bidders who want to liquidate the company.