Bankrupted Sears Secures a $100 Million Financing Deal

Bankrupted U.S based store operator Sears Holding Corp (SHLD) managed to strike a financial lifeline deal amounting to $100 million with hedge fund Brigade Capital Management LP. Sources involved with the matter have revealed.

This move is seen as one which will help the company make a step towards limping out of bankruptcy. Sears filed for bankruptcy last year and re-branded to ‘Transform Holdco’.

Since filing for bankruptcy Sears has been taking financial move in attempts to salvage the situation by any moves possible.

In fact was it not for the Chairman and CEO Eddie Lampert the company would have been liquidated last year but Lampert stepped in and provided a takeover bid of $5.2 billion rescuing the company from an imminent liquidation.

Its misfortunes forced the company to sell its Die Hard car battery business to Advance Auto Parts Inc. (AAP) in a deal worth $200 million.

The sale was not enough to keep the company afloat, thereafter Sears secured a $250 million loan from both external investors and Lampert’s owned hedge fund ESL Investments Inc.

Late last year Sears resulted to closing down around 100 stores leaving the company with only 182 stores, a number not even half the 425 stores the company had when it filed for bankruptcy.