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How Much Can Debt Financing Help Sears?

How Much Can Debt Financing Help Sears?

Sears Holdings (SHLD) has been obtaining debt financing from several lenders in order to stay afloat. Sears’s balance sheet as of October 28, 2017, had $2 billion in long-term debt and capitalized lease obligations, while it had another $1.1 billion as short-term borrowings. Recently, the company obtained another $210 million loan from ESL Investment, which is a hedge fund owned by Sears Holdings’ CEO Edward Lampert and other lenders.