In a letter this week from his lawyer obtained by The Globe and Mail, Mr. Stranzl says Sears's decision to sell its "crown jewels" – among them its 11 best stores – and let go of 1,200 more employees was made without consulting him even though the stores were included in the bid he is leading on behalf of a management group to keep Sears running. Mr. Stranzl estimates the 11 Sears stores whose leases are now earmarked to be sold – if the court gives its blessing to the sale agreements on Wednesday – would contribute more than 90 per cent of earnings (before interest, tax, depreciation and amortization) in the first year of his business plan to keep Sears and save thousands of jobs, the letter says.
Sears has been racing to close deals to sell its assets, making it more difficult for Mr. Stranzl's offer to get off the ground. Sears says it rejected his initial bid and a subsequent one because their financing and due diligence conditions were not firm enough.
Mr. Stranzl's management bid is the only one among about 70 that Sears received that contemplates the retailer continuing as a going concern, while the others would break it up and sell off assets in pieces to others.
