Sears won court approval for $350 million in bankruptcy financing that will keep the retailer operating through the holiday selling season as it attempts to reorganize.
Sources told CNBC that Sears on Tuesday reached the deal with Cyrus Capital Partners for the financing just before a hearing in U.S. Bankruptcy Court for the Southern District of New York concerning debtor-in-possession financing. The new loan will replace a loan from Great American Capital Partners, a financial firm affiliated with liquidation specialist Great American Group and financial services firm B. Riley Financial Inc.
The loan adds to $300 million that banks lent to Sears when it filed for bankruptcy protection in October.
News of the funding comes as a Wall Street Journal report reported that Sears’ advisors are considering offers from liquidators that would result in the closure of all its stores. Sears has already said it intends to close about 180 stores while its stores as chairman, Eddie Lampert, a billionaire who runs the hedge fund ESL Investments Inc., works on a potential bid for roughly 500 of Sears’s best-performing stores. ESL both owns Sears and is its largest creditor.