Monday, August 29, 2016

Why Sears Had to Borrow Another $300 Million From Its CEO

Here comes Eddie Lampert to Sears Holdings’ rescue again.

The hedge fund manager will provide additional debt financing of $300 million to the beleaguered retail company he now heads and created in 2005 by combining Sears department stores and Kmart.

News of the latest helping hand from Lampert, who controls just under half of Sears’ shares, comes amid yet another awful quarter: Comparable sales in the second quarter fell 3.3% at Kmart and 7% at Sears. The company blamed the poor showing on “a challenging competitive environment,” which is difficult to accept given how much better rivals Walmart  and J.C. Penney fared. . . . more

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