Sears will receive another lifeline in the form of $100 million in financing from Brigade Capital Management, people familiar with the matter told CNBC. The funds will be added to capital that has been bankrolled by Sears owner Eddie Lampert in recent months, according to the sources.
Sears is one of several retailers that have received a second chance through Brigade. The firm was part of a group that loaned Barneys New York $218 million in August 2019, helping it remain operational during the bankruptcy process that resulted in a sale to Authentic Brands Group. Brigade also was one of the lenders that took control of Gymboree when it exited bankruptcy in October 2017.
Lampert rescued Sears from liquidation in early 2019 when he purchased the company for $5.2 billion, but the department store has been struggling to stay afloat. Recent actions such as selling the DieHard brand to Advance Auto Parts in December 2019 and closing 96 additional stores between November 2019 and this month have kept the company alive, but Sears hasn’t shown any signs of a true turnaround.