BUSINESS NEWS FEBRUARY 20, 2020 / 3:31 PM / UPDATED 4 HOURS AGO

Exclusive: Sears snags new financial lifeline as losses continue - sources

Jessica DiNapoli, Mike Spector
3 MIN READ

(Reuters) - U.S. department store operator Sears has reached a deal for a fresh financial lifeline totaling roughly $100 million from hedge fund Brigade Capital Management LP, as it tries to stabilize after bankruptcy, people familiar with the matter said on Thursday.

Sears’ billionaire owner Eddie Lampert rescued the retailer from liquidation in a $5.2 billion takeover during bankruptcy proceedings a year ago. The company’s unabated need for new funding underscores Lampert’s challenges in turning it around.

Sears reached an agreement with Brigade for the $100 million financing in recent weeks, according to the sources, who spoke on the condition they not be identified because the negotiations were confidential. Lampert has also bankrolled Sears in recent months, the sources added, without disclosing the total amount of funding he provided.

A spokesman for Sears, now called Transform Holdco LLC, declined to comment. Brigade did not respond to a request for comment.

Brigade has extended loans to other troubled retailers, including high-fashion chain Barneys New York Inc and childrens’ clothing shop Gymboree.

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