Sears procedures OK’d for $60 million home improvement business sale

By Caroline Salls

Pittsburgh, Nov. 16 – Sears Holdings Corp. obtained court approval of the bid procedures for the proposed sale of its home improvement business, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

Service.com is the stalking horse bidder, with a $60 million bid. Service.com has also agreed to assume liabilities related to the business, pay up to $5 million in cure costs and pay a portion of specified bonuses, subject to a $2 million cap.

Sears said the business’s services include flooring, kitchen remodeling, exteriors replacement, services for entry doors, siding, roofing, windows, garage doors and HVAC systems, as well as dehumidifier/humidifier and water heater maintenance and repair services.

If Service.com is not the high bidder, Sears will pay it a break-up fee of 1.5% of the proposed purchase price.

Competing bids are due by 4 p.m. ET on Dec. 11.

The auction will be held on Dec. 13, if necessary. The sale hearing is scheduled for Dec. 18.

Sears is a retailer based in Hoffman Estates, Ill. The company filed bankruptcy on Oct. 15 under Chapter 11 case number 18-23538.

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