Sears Is Moving Closer to Loan Deal and Stave Off Shutdown
- New financing won’t involve Eddie Lampert’s hedge fund
- Sears will formally present plan in court on November 15
Shoppers walk outside of a Sears store.
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
Sears Holdings Corp. is inching closer to a financial lifeline that it needs to avoid running out of cash while it pursues a turnaround, according to a person with knowledge of the situation.
The new loan won’t involve Sears Chairman Eddie Lampert’s hedge fund, ESL Investments Inc., according to the person, despite the company’s initial plan for the executive’s firm to arrange that leg of financing. Lampert, through ESL, owns the majority of Sears’s debt in addition to being its primary shareholder.