"More important, Lampert personally lent billions to Sears Kmart, increasing corporate debt. As in-store sales lagged, Sears sold off major assets like Craftsman brand tools and Land’s End outdoor equipment to service the loans. Lampert also split ownership of 266 Sears and Kmart buildings into a real estate investment vehicle called Seritage. Last year, Sears and Kmart stores paid $200 million in rent on these properties they once owned, eating up operating revenue.

As Sears closes hundreds of stores and considers bankruptcy, Lampert will likely come out ahead. He enjoyed fees from all the lending to Sears, and he’ll recoup more money in any restructuring, even if Sears has to sell off inventory to do it. As a shareholder of Seritage, Lampert’s hedge funds can profit from higher rents charged to new retail outlets that move into the shuttered Sears locations." [1]

[1] https://newrepublic.com/article/145813/cause-consequences-re...