Boston, MA 10/03/2014 (wallstreetpr) – There is a famous quote that states ‘If you can’t sell it, buy it.’ It seems like Eddie Lampert understands the exact meaning of this quote and looks forward to making the practical use of it in his life. Last month he couldn’t sell Sears Holdings Corp (NASDAQ:SHLD) Canada unit in an auction, and now he is looking to buy a huge chunk of stocks of Toronto-based retailers. The main objective behind this move is to raise cash for running operations at other locations without any hassle.
Insights of the matter:
Since the day Eddie Lampert has joined Sears Holdings Corp (NASDAQ:SHLD) as its CEO, it has been bleeding cash dangerously. He is finding it very difficult to operate the company without enough cash. Recently he announced that he was looking to raise $380 million by selling 51% stake in Canadian Chain. According to him, the transaction would be executed by the first half of November. ESL Investments hedge fund of Lampert will buy 50% of the total stake, which means it will give $168 million cash to struggling retail store chain within a few weeks’ time. He is gearing up for coming holiday season and hopes that SHLD will be able to come over all the past downturns this time. In an effort to make offerings of the company look better, he has tried to raise funds for the second time within a month’s time. All the investors of SHLD were shocked last week when it decided to take a huge loan of $400 million from Lampert. Although it looked unsecured initially, but SHLD secured it after sometimes with 25 top real estate locations owned by it. At the end of the second quarter, it was short of funds as much as $863 million; therefore, it is trying everything possible to make things normal as soon as possible.
