Sears Holdings Corp (SHLD) Set to Controversially Receive $400 Million in Loan from ESL Investments

[unhappycamper]

http://www.stockwisedaily.com/sears-holdings-corp-shld-set-to-controversially-receive-400-million-in-loan-from-esl-investments-inc-affiliates/235779/



Sears Holdings Corp (SHLD) Set to Controversially Receive $400 Million in Loan from ESL Investments Inc. Affiliates
2 hours ago

Sears Holdings Corp (NASDAQ:SHLD) is expected to receive a $400 million in loan from groups associated with own CEO, Edward Lampert, who also doubles up as the Chairman. Even though the contention in the borrowing isn’t readily noticeable, a more objective look reveals that all the lenders in the loan agreement are under the control of one, Mr. Edward Lampert, the CEO and founder of the lending company, ESL Investments Inc.

The move to borrow comes at a time when the company has been facing financial challenges. The fact that Sears Holdings Corp (NASDAQ:SHLD) posted a $573 million loss plus all the company’s financial challenges, it was high time the CEO and team looked for alternative sources of funds. And as it appears, Lampert chose his hedge fund.

~snip~

The loan amount plus another $665 million that the company earned from land and real estate sales means that the company, under the stewardship of Lampert, now has about $1 billion to pull it off its worrying financial state. If Sears Holdings Corp (NASDAQ:SHLD) doesn’t get its traction right financially, it might be forced to sell off more of its assets.

With such poor performance, there has been a growing concern by investors and market analysts who feel that the company’s future is bleak. Some ratings have also graded Sears Holdings Corp (NASDAQ:SHLD) poorly in terms of credit worthiness, factors that might see many investors pull out. Flitch Ratings even said that the company’s poor financial performance might make it difficult for the company to live beyond 2016.

[Uben]

1. Sears is dying a slow death

Their business model does not appeal to Americans anymore. I think its been downhill ever since they stopped distributing catalogs.....when was that? the 80s? The couple of times I have been in their stores, it looks and feels more like Kmart than Sears.

My issue with Sears is over their policies. I will never ever shop there again.