Tags: sears | eddie lampert | bruce berkowitz | fairholme

Sears Obtains More Financing from Eddie Lampert's Investment Fund

Sears Obtains More Financing from Eddie Lampert's Investment Fund
(AP)

By    |   Thursday, 01 February 2018 04:42 PM EST

Sears Holdings Corp., the owner of Sears and Kmart retail chains that has closed stores, fired employees and sold assets in a desperate bid to survive, secured $210 million in loans from Chief Executive Officer Eddie Lampert’s investment fund and other parties.

The borrowing was comprised of several installments: $100 million on Jan. 4, $30 million on Jan. 19 and two segments totaling $80 million on Jan. 29, according to a filing with the U.S. Securities and Exchange Commission.

The stock fell 3.1 percent on Thursday to close at $2.49 a share. Sears declined 63 percent in the past 12 months, hovering near a 52-week low of $2.37.

The company last month said it was negotiating with lenders to strengthen its balance sheet and improve the terms on more than $1 billion of debt. Sears would consider "all options" if efforts to refinance debts fail, the company said.

Sears on Wednesday cut 220 employees from its corporate headquarters in Hoffman Estates, Illinois. The company has been losing money for the past six years as consumers shifted their spending to e-commerce companies like Amazon.com Inc.

Bruce Berkowitz, the second-biggest shareholder in Sears, this week said in its annual report that the retail holding company “wrecked” the performance of his hedge fund, Fairholme Capital Management.

"Sears realized billions of dollars from asset sales, as we predicted, but I did not foresee the operating losses that have significantly reduced values,” Berkowitz wrote. "Getting the asset values largely correct, but missing the company’s inability to stop retailing losses, has been hugely frustrating and fatiguing for me to watch. Today Sears is a much diminished position and nowhere as relevant to our financial position."

Berkowitz in October resigned from Sears' board of directors. At the time of his departure, a Fairholme spokesperson said Berkowitz was leaving because he had "achieved his objective" on the board.

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StreetTalk
Sears Holdings Corp., the owner of Sears and Kmart retail chains that has closed stores, fired employees and sold assets in a desperate bid to survive, secured $210 million in loans from Chief Executive Officer Eddie Lampert's investment fund and other parties.
sears, eddie lampert, bruce berkowitz, fairholme
310
2018-42-01
Thursday, 01 February 2018 04:42 PM
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