Report: Sears lines up more credit from its CEO

Sears Holdings Corp. has received another lifeline courtesy of CEO Eddie Lampert.



The struggling retailer said it has received loan, called a secured letter of credit, for $200 million, with an option to expand the amount to as much as $500 million with the consent of lenders.



Affiliates of ESL Investments Inc., the hedge firm run by Lampert, is providing the funding through Citigroup Inc. Over the past two years, Lampert and his hedge fund have loaned Sears more than $800 million — not including this most recent cash infusion — to keep the chain in operation, according to Business Insider.



“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. Hollar, CFO, Sears Holdings. “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 $748 million from $454 million in the year-ago period. Sales plunged 13% to $5 billion. Same-store sales fell 7.4%.