More Money Infused Into Sears: Is This The Last Hope For The Struggling Retailer?

More money is reportedly being infused into struggling retailer Sears. The company has secured about $100 million in financing from hedge fund Brigade Capital Management as it looks to overhaul its struggling business after bankruptcy, sources told CNBC.

Sears, now owned by Transform Holdco, filed for bankruptcy in October 2018, emerging from the Chapter 11 filing through a $5.2 billion deal with former chairman Eddie Lampert and his hedge fund ESL Investments.

Since announcing the purchase, the company has closed nearly 100 Sears and Kmart stores and sold its DieHard car battery brand to Advanced Auto Parts for $200 million.

This is not the first time that funding has been extended to Sears since its Chapter 11 filing. Lampert bankrolled $150 million into the company back in October 2019, and additional financing was reportedly provided through a $250 million loan from ESL Investments.

Sears is at risk of defaulting on debt agreements with its banks, causing the need to raise additional capital or close more stores, sources for the news outlet said.

Sears has about 182 stores, which decreased from the 425 owned at the time that Lampert picked up the company in bankruptcy.