As Sears faces calls to wind down its operations, the retailer is reportedly putting the finishing touches on a deal for $350 million in financing with Great American Capital Partners, along with other lenders. The potential deal could bring the retailers’ financing package up to $650 million, with $300 million in loans pledged by bank lenders, Reuters reported.
The retailer reportedly chose the proposal from Great American Group, along with partners, over one from hedge funds. Neither Cyrus Capital Partners LP, a hedge fund reportedly included in that proposal, nor Great American immediately responded to a request for comment. However, the newswire reported that lenders are still crafting the deal along with the retailer. As a result, the terms could change or the deal could potentially fall apart altogether.
In October, Sears Holdings filed for Chapter 11 bankruptcy and prepared to shutter just under 150 stores following decades of declining revenue and hundreds of store closures. In its Chapter 11 filing, Sears reportedly listed $6.9 billion in assets and $11.3 billion in liabilities. The bankruptcy filing was the culmination of years of effort on the part of Sears and Chief Executive Officer Eddie Lampert to turn around the company.
Lampert had long vowed to bring Sears back to its glory days when it was a leading retailer, but his efforts failed to resonate with consumers. Sears hasn’t had a profit since 2011, and Lampert has faced criticism that he let the retailer’s brick-and-mortar stores deteriorate. Over the years, Sears has sold its Craftsman brand and was reportedly mulling an offer for the Kenmore appliance brand.
The news comes as Bloomingdale’s, which is known for selling clothing, plans to sell appliances. The retailer is reportedly working with LG to have a shop in its flagship Manhattan store, which will offer dishwashers, televisions and other appliances. USA Today reported that the move comes amid a market where Sears and Toys R Us have struggled.