Sears chairman Eddie Lampert is working on a plan to fix the company that would center on him once again forking over cash to keep it afloat, according to a new report.
Lampert’s hedge fund ESL Investments has held discussions with investment firm Cyrus Capital Partners about putting up some of the cash for a $300 million loan the company needs, Reuters is reporting, citing people who claim to have knowledge of those talks. It’s unknown how much of the $300 million they could put up. The talks might also fall through with no deal reached between the firms.
Sears is in free fall with the possibility of the company closing. The company’s banks have already offered to give the company $300 million in a bankruptcy loan and the loan discussed between Lampert’s firm and Cyrus would be separate from that. The loan would also be secondary to the bankruptcy loan for repayment purposes.
That wrinkle, along with the potential risk of putting up $300 million for a company that’s filed bankruptcy might prompt Lampert to go another direction, according to the Reuters report. The news outlet’s sources said that Lampert could replace the bank’s $300 million offer and put up a total of $600 million.
Lampert is Sears’ biggest shareholder and creditor, and as chairman of the board, he plays a pivotal role in Sears’ uncertain future. According to Reuters, Lampert will also bid for the 400 Sears stores that are still performing well at an auction in January.
Sears did not immediately respond to a Coins2Day request for comment on the Reuters report.