Sears Takes Another $40M From CEO’s Hedge Fund
For the second time in a month, Sears Holdings turned to CEO Eddie Lampert’s hedge fund, this time tapping it for $40 million, according to a filing with the Securities and Exchange Commission. The filing represents an amendment to a revised Oct. 4 loan agreement. In that earlier filing, the company said it recently borrowed $100 million and can borrow an additional $100 million from subsidiaries owned by Lampert’s fund, ESL Investments, between now and Dec. 1. Sears has so far borrowed $499.4 million through a real estate-backed loan dating back to January. The new $100 million requires Sears to put up additional properties or other assets as collateral. The latest filing comes in the same month that Sears Canada announced it would seek court approval to liquidate and major Sears investor Bruce Berkowitz, chief investment officer at investment management firm Fairholme Capital Management, and president and director of Fairholme Funds, announced he is stepping down from Sears Holdings’ board of directors effective Oct. 31. Read more at Retail Dive.
