Court gives Sears new life, allows Chairman Eddie Lampert another chance to save retailer

Sears is giving Chairman Eddie Lampert another chance to buy the company out of bankruptcy and save roughly 55,000 jobs.

Sears on Tuesday had planned to tell the bankruptcy court it had rejected Lampert’s offer to buy the retailer, after it fell short of covering its bankruptcy expenses. Lampert, though, protested the decision, highlighting the extensive costs of Sears’ bankruptcy advisors, a person familiar with the situation told CNBC.

Ultimately, the bankruptcy judge gave Lampert more time. ESL will be required to pay a $120 million deposit by 4:00 p.m Wednesday. Sears will hold an auction on Jan. 14, when it will compare Lampert’s offer against liquidators.

This story is developing. Please check back for updates.