Todd A. Feinsmith, the partner in charge of the Boston office of Pepper Hamilton and a co-chair of the firm’s Corporate Restructuring and Bankruptcy Practice Group, was quoted in the January 8, 2019 Fox Business article, "Sears Gets a Lifeline, Retailer Gets One Last Shot at Survival."
Todd Feinsmith, co-chair of the Bankruptcy Practice Group at Pepper Hamilton LLP, told FOX Business that despite the back and forth, it is still "very possible that a deal will be made" if Lampert improves his bid.
"He has much to lose. The sticking point with the current bid is that it is insufficient to cover the administrative costs of the bankruptcy, including the fees of lawyers and other professionals. In part, this is because there is a large 'non-cash' component to Lampert's current bid — namely, the part of Lampert's bid which provides for a waiver of approximately $1.3 billion in debt he holds against Sears. Debt relief is one thing, but cash is king in a bankruptcy, and creditors want to get paid," Feinsmith said.
What's more, he said the demise of Sears overall would be "very bad news" for other retailers in malls across the country as many rely on "anchor tenants" such as Sears to generate foot traffic.
"[But] on the other hand, online retailers such as Amazon would benefit because they would pick up additional market share from former Sears customers."