ESL Investments Calls Allegations That Eddie Lampert Siphoned $2 Billion From Sears ‘Baseless’
ESL Investments has responded to the federal lawsuit filed on Thursday by Sears Holdings Corp.
The suit accuses former CEO Eddie Lampert, his ESL Investments hedge fund and others associated with Sears of stripping the chain of some $2 billion of assets even as the retailer racked up huge losses.
In a statement e-mailed to RIS sister brand Chain Store Age, ESL Investments said it “vigorously disputes” the claims in the complaint, which repeats “baseless allegations and fanciful claims. As we have previously said, the debtors’ allegations are misleading or just flat wrong.”
The lawsuit was filed by the restructuring team winding down Sears’ bankruptcy estate and suing on behalf of creditors, many of whom blame Lampert for the retailer’s downfall. Among other things, it cited sales or spinoffs of key assets that were allegedly used to profit Lampert and ESL, including the spinoff of Lands’ End in 2014 and Lampert’s real estate investment trust Seritage Growth.
Click here to read ESL’s complete statement