Without question, Sears is a 20th century dinosaur. A relic of a prior age. Lampert’s attraction to Sears over the last decade and a half has been a source for conjecture and speculation. Guesses have ranged from asset stripping to ownership of its vast network of real estate to some undefined nostalgia. Perhaps Sears provides Lampert a vehicle for financial maneuvering. We don’t know?
But strangely, several weeks after Sears’ bankruptcy filing, Lampert enlisted Stephen Freidheim and the resources of Cyrus Capital Partners to help buy Sears out of bankruptcy court. Apparently, Cyrus held positions in both debt and equity of Sears as it approached bankruptcy. Cyrus also apparently sold massive amounts of credit default swaps (CDS), wagering that Sears would keep paying off its debt.
