News

Sears' financial stumbles lead to CEO cash infusion.

August 26, 2016

The latest financial news for struggling retailer Sears isn't good and the retailer is hoping its top chief can keep things stable as it aims to sell real estate, home services and even some household brands in a quest to remain a viable business.

A Forbes report reveals Sears is getting a $300 million loan from CEO Edward Lampert following some dismal quarterly financial news. Sears is reportedly aiming to divest some top brands including Kenmore and Craftsman, claims Forbes.

It's the second time the CEO is providing a bailout. He loaned the company $125 million earlier this year.

In the most recent quarter Sears experienced a dip in net loss of $395 million, about $3.70 a share, and U.S. same store sales dropped 3.3 percent for Kmart and 7 percent for the Sears stores, according to a press release regarding second quarter earnings.

Revenue dip was greater, with a 10 percent drop.

"We continue to face a challenging competitive environment and while we continue to focus on our overall profitability, including managing expenses, we reported a net loss for the second quarter,"” Lampert said in a press release. "We are encouraged by the year-over-year improvement in our Adjusted EBITDA and feel we are making progress in our transformation as we remain focused on our best stores, our best members and our best categories to drive our business and enhance the member experience," Lampert added.