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- Sears took out its third loan in a month from its CEO’s hedge fund. The fund has loaned Sears $200 million in the last month alone. Over the last two years, Lampert and his hedge fund have loaned Sears roughly $2 billion.
The retailer has borrowed $60 million from affiliates of Lampert’s hedge fund, ESL Investments, according to a Monday filing with the Securities and Exchange Commission that was first reported on by the Chicago Tribune.
The loan follows another $40 million loan Sears borrowed from ESL last week. And, earlier in October, Sears borrowed $100 million from ESL. At the time, ESL Investments also agreed to lend the troubled retailer up to $100 million more by December 1.
Over the last two years, Lampert and his hedge fund have loaned Sears roughly $2 billion to keep the business in operation, as the retailer has struggled in the face of declining mall traffic and growing e-commerce competition.
Sears has announced plans to close more than 300 Kmart and Sears stores in 2017. The closings will bring Sears’ store count to less than 1,140, down from 2,073 five years ago.
Earlier in October, Sears Canada announced it would seek court approval to liquidate its remaining stores and assets in the nation.
In August, Sears reported that sales at stores open for at least a year fell 11.5% in the second quarter. Total revenue fell 22% to $4.37 billion in the most recent quarter, mainly due to store closures.