Sears is borrowing another $186 million from familiar sources: affiliates of Chairman and CEO Edward Lampert and Bill Gates' Cascade Investment.
Sears Holdings Corp. already owed Cascade and affiliates of Lampert's hedge fund, ESL Investments, about $593 million under an existing loan agreement, Sears disclosed Monday in a regulatory filing.
The latest cash infusion brings the total amount outstanding to $779 million, due July 20, 2020, Sears said.
Sears used the money to pay off a 2017 loan secured by mortgages on 13 real estate properties. Those 13 properties will join 56 other Sears-owned properties as collateral securing the loan maturing in 2020, Sears said.
ESL affiliates JPP and JPP II, which are controlled by Lampert's hedge fund, provided about half of the $186 million and have repeatedly lent money to Sears in recent years.
As Sears continues its turnaround efforts, the struggling retailer in recent years has been cutting thousands of jobs, closing hundreds of stores and selling off assets, such as store real estate and the Craftsman tool brand. The chain announced last week that it would close another 63 unprofitable Sears and Kmart stores, including five in Illinois.
