ESL Partners, L.P. and Edward S. Lampert announce material change to previous early warning report

BAY HARBOR ISLANDS, FL, July 10, 2017 /CNW/ - ESL Partners, L.P., Edward S. Lampert and certain affiliated entities (collectively, "ESL") announce that ESL and Fairholme Capital Management, LLC ("Fairholme") have engaged Canadian legal counsel to represent them in connection with Sears Canada Inc.'s (the "Issuer") proceedings under the Companies' Creditors Arrangement Act (the "CCAA"). In connection with such engagement, ESL and Fairholme are evaluating, discussing and considering a potential negotiated transaction with the Issuer and its subsidiaries. ESL and Fairholme may engage in discussions, either together or individually, with the Issuer, the monitor in the CCAA proceedings and/or other parties regarding the Issuer and its business, affairs, operations, results of operations, contracts, liabilities, properties and prospects, including discussions regarding potential transactions involving the Issuer or its affiliates (which includes, without limitation, financing transactions, purchase and sale transactions or restructuring transactions). ESL, either individually or together with Fairholme or other parties, may make proposals with respect to such transactions involving the Issuer or that may otherwise involve other types of transactions.  There is no assurance that ESL will make or pursue any such proposal or transaction or that any such proposal will result in a completed transaction. In addition, if ESL makes or pursues any such proposal or transaction, there is no assurance that Fairholme will participate in such proposal or transaction.

ESL may be deemed to beneficially own in aggregate 46,162,515 common shares of the Issuer, representing approximately 45.3% of the outstanding common shares of the Issuer.

This press release shall not be construed as an admission that ESL beneficially owns or controls, for the purposes of Section 13(d) or 13(g) of the United States Securities Exchange Act of 1934, or any other purpose, any securities covered by this press release.

SOURCE ESP Partners, L.P.

For a copy of the early warning report corresponding to this press release, please contact Harold Talisman, ESL Investments, Inc., 1170 Kane Concourse, Suite 200, Bay Harbor Islands, Florida 33154 at [phone].