Sears Again Taps CEO for Loan
Sears has borrowed $60 million from affiliates of its CEO, Edward Lampert. This marks the third time in a month the retailer has asked for financial help. The Chicago Tribune reports Sears Holdings Corp. borrowed $100 million from affiliates of Lampert's hedge fund, ESL Investments, earlier last month. The first draft of $40 million took place October 18. It then drew the remaining $60 million a week later.
“We continue to focus on actions to provide the company with additional financial flexibility to generate liquidity and demonstrate our ability to manage our business while meeting all of our financial obligations,” Sears spokesman Howard Riefs wrote in an email to the Chicago Tribune.
Total Retail's Take: One has to wonder if this holiday season is make-or-break time for Sears. The retailer has been dealing with falling sales and profits for years now, and its primary method for combatting this reality has been to continue to borrow more money. At this point, a turnaround seems unlikely. Even with new digital efforts and the return of customer favorites, such as the Big Wish Book, the opportunity for Sears to make a comeback is narrowing.
