Sears is getting another major cash infusion and this time the money is coming from a hedge fund run by Eddie Lampert, the company’s CEO.
Forbes reported on Tuesday that Sears revealed in an 8-K filed with the Securities and Exchange Commission that it entered into a $400 million short-term loan with affiliates of ESL Investments, which is owned by Lampert.
The report said Sears received the initial $200 million at the close of business on September 15. The remaining $200 million will be funded on September 30.
Specifics on how Sears plans to use the money were not provided. The retailer would only say that the loan would be used for “general corporate purposes.”
In October 2013, Sears borrowed $1 billion with the net proceeds of the loan to be used to reduce borrowings under its revolving credit line.