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Longtime Sears boss and investor Eddie Lampert orchestrated on "multiyear and multifaceted scheme" to strip the company of assets and capitalize on its decline, a group of retailers major creditors alleged.

Lampert, who remains chairman of Sears and was CEO until the company filed for Chapter 11 bankruptcy in October, presided over the closure of more than 3,500 stores and the loss of about 250,000 jobs, According to a scathing filing on Wednesday, unsecured creditors

The creditors are hoping to persuade a federal judge to force Sears to liquidate instead of accepting the latest offer by Lampert's hedge fund ESL Investments to keep a version of the company alive. 19659007] They took the unusual step of filing a 136-page history of what they called "Sears' tragic descent from giant to ghost."

Lampert "engaged in serial asset stripping" of the c ompany after taking control in 2005 following the company's tie-up with Kmart, the creditors said. "Lampert was hopelessly conflicted as he presided over Sears' descent into insolvency and into a persistent state of liquidity crisis." The Sears in White Plains, N.Y., is two blocks from the U.S. bankruptcy court ” width=”540″ data-mycapture-src=”” data-mycapture-sm-src=””/>

The Sears in White Plains, N.Y., is two blocks from the U.S. bankruptcy court (Photo: Ricky Flores / The Journal News)