Sears Holding Co. (SHLD), borrowed $800 million two years ago to right their ship, but looks like the ship continues to sink lower & lower into the abyss. As of last Thursday or Friday, Sears borrowed another $200 million to continue their quest to Bleed resources or as Sears financial officer stated " adjust our capital structure, generate liquidity and manage our business to enable us to execute on our transformation while meeting all of our financial obligations,” Jason M. Hollar, Sears Holdings"
Loans or letter of credit to Sears is coming from JPP, LLC and JPP II, LLC. These are both affiliates of hedge fund ESL Investments, Inc. Interesting enough it turns out the hedge fund is owned by Eddie Lampert, the Chairman and CEO of SHLD. The question becomes, what collateral is Sears using to back up these loans? Real-estate property, perhaps. If Sears fail to repay loans, E. Lampert's Hedge funds stand to obtain perhaps, a lot of realestate property to liquidate and recoup their money. All I can say is good luck to them, Sears Executives seem to have more emphasis on trying to keep afloat & in business, instead of focus on attracting new customers to their brick and mortars. They need to be working on both or explore new avenues..but the old business model may be outdated and too late to recover in the way we once knew Sears. I don't ever see Sears being like it once was...but at least they are trying to pay their Bills...