Sears has announced it will close a further 40 stores as it looks to reshape the business toward profitable growth

Sears has announced it will close a further 40 stores as it looks to reshape the business toward profitable growth

US department store retailer Sears Holdings Corp is reported to have secured a US$350m court-approved loan just ahead of bankruptcy hearing on its financing arrangements.

Reuters – citing a person familiar with the matter – says the US$350m loan deal was agreed with Cyrus Capital Partners. 

The loan replaces a similar deal Sears reached earlier this month with Great American Capital Partners - with Cyrus offering better terms to Sears, the person said.

Neither Sears nor Cyrus commented at the time of press when approached by just-style.

Sears filed for bankruptcy last month and announced the closure of 142 of its stores. It said at the time it was rolling out a series of actions to position it "to establish a sustainable capital structure, continue streamlining its operating model and grow profitably for the long term." 

Its CEO Edward Lampert also stepped down, but remains chairman of the board.

The moves followed weeks of speculation Sears was heading towards bankruptcy.

In the half year to August, the company made an operating loss of US$419m.

On 8 November Sears announced it would close a further 40 Kmart and Sears stores across the US.