Sears, the company that refuses to die has secured a $200 million dollar lifeline according to this CNBC report.
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 — shuttering unprofitable stores — 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.
From the backwoods of Michigan, Thomas Dishaw is writer and health hacker. Thomas currently resides outside Philadelphia with his wife and dog. You can support Thomas' work by making a donation below or following him on Instagram. You can reach Thomas via email at firstname.lastname@example.org.