Struggling retailer Sears received approval on Tuesday for a $350 million loan, which will keep the bankrupt department store chain operating through the holidays, according to Reuters.
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The funding, which was approved during a hearing in bankruptcy court, will reportedly come from Cyprus Capital Partners. The firm is one of the hedge funds that was in talks with Sears to keep it operating during bankruptcy proceedings, people familiar with the matter told Reuters.
The deal is expected to replace an agreement reached with Great American Capital Partners earlier this month. Sources told Reuters the terms of the new deal were more favorable.
A Sears spokesperson declined to comment. Cyprus Capital Partners did not immediately return FOX Business’ request for comment.
In October, after filing for bankruptcy, the retailer got approval to tap $300 million from a group of big banks, giving the retailer a total of $650 million in financing. As part of its bankruptcy deal, the once iconic retail chain said it would close more than 170 of its 700 stores by the end of the year.
Earlier this month, Sears chairman Eddie Lampert – who also runs ESL Investments which has provided millions of dollars in financing to the retailer – came under scrutiny for potentially engaging in insider transactions dating back to 2005.
Sears has been spinning off profitable brands – like Craftsman – to keep it afloat throughout a restructuring process.
On Monday, shares were trading around $0.30.
|SHLD||VICTORY PORTFOLIOS II VICTORYSHARES PROTECT AMER||29.65||-0.41||-1.36%|
The retailer has not posted a profit since 2012.