Sears digs into Lampert's pockets with new quarterly loss

Sears Holdings Corporation posted another quarterly loss in the second quarter -- and it'll be borrowing an additional $300 million from CEO Edward Lampert's hedge fund, ESL Investments, to help make up for it.

The loan is in addition to the $500 million it obtained in April, for which ESL Investments provided $125 million.

"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," said Lampert. "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."

Net sales for the quarter ended July 30 were down 8.8% to $5.7 billion last quarter, compared to $6.2 billion in the previous year's second quarter. Sears attributed the decrease primarily to a 5.2% decline in comparable store sales.

Net loss attributable to shareholders dropped to $395 million, compared to net income of $208 million in the year-ago period.

Meanwhile, comparable-store sales fell 7% at Sears stores and 3.3% at Kmart stores.

The company also continued its store closings streak with an additional 78 stores. The promise of more store closings in the retailer's future was implied, particularly with CFO Rob Schriesheim's mention of the soon-to-expire leases on hundreds of stores.

"As we move into the second half of 2016, we continue to explore alternatives for our Kenmore, Craftsman and DieHard and Sears Home Services businesses by evaluating potential partnerships or other transactions," added Schriesheim.