Sears to Borrow $300M From CEO Lampert as Losses Mount
Iconic retailer Sears Holdings last week announced that it would accept a loan offer of $300 million from Edward Lampert, the hedge fund manager who runs the company. The loan, from Lampert's ESL Investments, will help provide funds for the all-important holiday season and reassure lenders and vendors nervous about more than $9 billion in losses since 2012.
Total Retail's Take: Lampert has been all things to the iconic American company: the architect of its merger with Kmart, its chief executive officer and marketing guru, and its biggest shareholder. With his latest $300 million loan to the perennially money-losing retailer, he’s also helping it survive, which is a good thing. However, since the announcement follows another quarter of declining sales and red ink for Sears, concerns about the once-mighty chain's future continue.