Sears Update: Will Eddie Lampert’s Loan Help The Retailer Survive The Holidays?

As Sears continues to struggle, it has looked to its own owner to shore up funding to keep it afloat.

Sources have told Reuters that the retailer has borrowed $150 million from its lenders, including Eddie Lampert, the owner of the company. This is just shy of the $200 million that Sears was looking to secure to make sure its stores’ shelves were stocked for the holiday season, the news outlet said.

The loan from Lampert and lenders is backed by the company’s real estate and intellectual property, but has caused some concern about Sears prospects and financial wherewithal, the sources said.

Others helping to finance Sears include Cyrus Capital Partners LP, which is the same lender that financed the company during its Chapter 11 filing last year, the sources said.

Amid a rash of store closures, Sears is struggling to become profitable after filing for bankruptcy in October 2018. Now a year later, the company continues to see its losses mounting, and it is still reportedly looking to raise about $200 million despite the $150 million loan.

Lampert has loaned Sears money in the past through his hedge fund ESL Investments, which made the $5.2 billion deal to purchase the retailer last year.