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Is the End of Sears Upon Us? A Bankruptcy Attorney Breaks It Down

Here's a breakdown of what investors should be watching as the auction for Sears approaches.

Is it time to say goodbye?

David Wander, partner at Davidoff Hutcher & Citron sat down with TheStreet to discuss all things Sears (SHLDQ)

"Let's look at this as the end of the beginning for Sears," Wander said. "Because, first of all, on the 14th is the auction so you'll have [Eddie] Lampert bid against the liquidating big or values that the creditors committee says the liquidation of the company is worth. The process can go on for at least two to three days."

On Thursday, Jan. 10, Lampert's hedge fund, ESL, announced that it was raising its bid to $5 billion from $4.4 billion. 

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TheStreet asked if the $5 billion bid was enough for the iconic retailer. 

"Well when you say enough you have various groups of creditors and even non creditors like employees who have some claims but basically want to keep their jobs. And each group is going to look at the bid from their own enlightened self-interest," Wander answered. "So the secured creditors may do well. Some landlords will do well if their leases are assumed. Some landlords won't do well if their leases are being rejected. Employees who work at the stores that are going to continue, they'll have their jobs and the employees at the stores that are being closed won't have their jobs."

Wander broke down the two scenarios that could come about after Jan. 16. One scenario is that Sears accepts Lampert's hedge fund's bid and the other is that Sears rejects it and instead chooses to liquidate itself. 

Jim Cramer broke down retail and Sears in his daily column on Thursday.

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