Sears sets terms for $60 million sale of home improvement business

By Caroline Salls

Pittsburgh, Nov. 5 – Sears Holdings Corp. requested court approval of the bid procedures for the proposed sale of its home improvement business, according to a motion filed Saturday 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 company has asked the court to schedule a Dec. 18 sale hearing.

A hearing on approval of the bid procedures is scheduled for Nov. 15.

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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