Matt Mason: Jobs, Jobs, Jobs: Why Lampert’s Bid Won Contest for Sears – Bloomberg
Matt Mason was featured in Bloomberg‘s article titled “Jobs, Jobs, Jobs: Why Lampert’s Bid Won Contest for Sears.”
For liquidators, “it’s almost like starting the race 10 yards behind,” said Matthew Mason at restructuring firm Conway MacKenzie, who worked as in-house counsel for Kmart prior to its 2005 merger with Sears. In theory, bankruptcy law is supposed to make maximizing payments to creditors an absolute priority, but this can be put aside when there’s a compelling reason, Mason said — and the huge headcount carried a lot of weight.
“Lampert’s advantage was that there was no other plan that contemplated keeping these jobs,” he said.
How long Lampert’s plan will keep workers employed is open to question, Mason said. More than 150 of the stores Lampert is buying are poor performers and may not survive, Mason said, adding he hasn’t seen a business plan from Lampert that’s fundamentally different from before the bankruptcy.