SLOW DEATH: Sears inks $200 million credit line from CEO Eddie Lampert’s hedge fund

Sears, the company that refuses to die has secured a $200 million dollar lifeline according to this CNBC report.

Sears Holdings has landed a fresh line of credit, valued at $200 million, from its CEO Eddie Lampert’s hedge fund, according to a Monday filing with the Securities and Exchange Commission.

On July 13, Lampert’s ESL Partners entered into a short-term line of credit loans, which carry a maturity date of 151 days and a fixed interest rate of 9.75 percent per year, Sears said.

“This facility is intended to provide the Company with the flexibility to generate additional liquidity on an as-needed basis,” Sears CFO Rob Riecker said in a statement.

“This adjustment to our capital structure demonstrates that Sears Holdings will continue to take actions to generate liquidity and manage our business while meeting all of our financial obligations.”

Sears’ stock surged 9 percent higher Monday morning following this news. Shares are now up more than 32 percent from one month ago. This, compared with a loss of nearly 40 percent over the past 12 months.

In 2017, Sears has been trimming its real-estate portfolio ā€” shuttering unprofitable stores ā€” and making moves, such as opening smaller locations that only sell mattresses and appliances, to stay afloat.

Dwindling foot traffic across American malls is dragging many department stores down with it.

Earlier this year, media shy CEO Lampert sat down for an interview with the Chicago Tribune in which he said the retailer is “fighting like hell” to battle negative headlines and pessimism regarding Sears’ ability to continue.

  • pablo

    great, now the company should learn its lesson when asking employees to ask customers to Buy online is only killing its business in its stores and employee loyalty, and the fat asses that don’t want to get off their butts to go to a local store which in turn supports other local businesses, so don’t buyonline since those local jobs that get loss maybe also supports your own fat ass that doesn’t want to get up, the savings sometimes may be good in the short run, but it really hurts everybody, just like kohls which cut employee hours to sell more online isn’t working out that good for the managers either