Over the past two years, Lampert and his hedge fund have loaned Sears more than 0 million — not including this most recent cash infusion — to keep the chain in operation, according to Business Insider. The Sears anchor store at the Charleston Town Center will close in mid-April, Sears spokesman Howard Riefs confirmed Wednesday.
"As Sears Holdings has consistently shown, we will take actions to adjust our capital structure, generate liquidity and manage our business to enable us to execute on our transformation while meeting all of our financial obligations," stated Jason M. "This new standby letter of credit facility further demonstrates that Sears Holdings has numerous options to finance our business strategy." Sears reported dismal results for its most recent quarter, with its loss widening to 8 million from 4 million in the year-ago period. The Sears Auto Center will also be closing as part of the move.
News that Sears Holdings had lined up a new credit facility sent shares of the company dramatically higher Thursday, Dec. The stock gained on the idea that the company behind Sears and Kmart had bought itself a little time even if the money it now has access to will not cover its 2017 debt-servicing needs. In addition, revenue dropped by 1 million in Q3.Sears announced earlier this month it would be closing 64 Kmart stores after closing nearly 80 Sears and Kmart stores in July.More than 750 leases on Sears and Kmart stores expire in the next five years. Susan Romero remembers how she welled with pride when her family bought its first washer and dryer in 1968. "My whole kitchen, my whole house was furnished by Sears," said Romero, 74, who has shopped at the retailer for 50 years.Those are bad numbers and there's no reason to expect the company to reverse those fortunes in Q4.CEO Eddie Lampert, whose hedge fund loaned the company 0 million in August, has pushed the idea that the company can stabilize by closing unprofitable stores and focusing on its Shop Your Way digital platform.That never materialized, which suggests that either the offers were not high enough or none were made.Still, it's likely that Sears could sell off those brands and raise the money it needs to keep going, at least in the short term.-- a firm run by Lampert, which is providing funding through Citigroup.This money, which is actually just a promise of funds designed to convince vendors to keep supplying the company, represents only a small piece of what Sears Holdings needs to make it through the year."This new standby letter of credit facility further demonstrates that Sears Holdings has numerous options to finance our business strategy." What does Sears Holdings do next?While its CFO says Sears has numerous options to fund its turnaround, in reality the best move to pay its debt would be to sell off all or some of its Kenmore, Craftsman, and Die Hard brands as well as its Home Services installation and repair businesses.