Sears Holding Corp. said Wednesday it has borrowed $1 billion through a new secured loan it will use to pay other debts and prepare for the holiday season.
The Hoffman Estates-based company first said it planned to borrow the money last month.
Sears’ loss widened in its most recent quarter, and its short-term borrowing is up nearly threefold from last year as it continues to spend more of its shrinking pile of cash.
The amount of cash a retailer has on hand is critical at this time of year, when they are eager to compete for holiday shoppers and need to pay for a sharp increase in inventory.
Sales at the company, which is helmed by hedge-fund billionaire Edward Lampert, have been slipping since 2006. In addition to the iconic Sears brand, Sears is the parent company of Kmart and Lands’ End.
sbomkamp@tribune.com | Twitter: @SamWillTravel
