Sears Needs 10 Times Loan From Lampert: Corporate Finance
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Eddie Lampert’s $400 million loan to Sears Holdings Corp. is enough to keep the 128-year-old retailer going for three months. It’ll need 10 times that capital if it hopes to see its 130th birthday.
After racking up more than $6 billion in losses over four years, the retailer will run out of cash in 2016 without at least $4 billion of new capital, according to Fitch Ratings. Credit-default swaps show traders are betting against the operator of its namesake chain and Kmart, pushing down its perceived creditworthiness at the fastest pace among major U.S. department stores, data compiled by Bloomberg show.