Sears Holdings Corp (NASDAQ:SHLD) is expected to receive a $400 million in loan from groups associated with own CEO, Edward Lampert, who also doubles up as the Chairman. Even though the contention in the borrowing isn’t readily noticeable, a more objective look reveals that all the lenders in the loan agreement are under the control of one, Mr. Edward Lampert, the CEO and founder of the lending company, ESL Investments Inc.

The move to borrow comes at a time when the company has been facing financial challenges. The fact that Sears Holdings Corp (NASDAQ:SHLD) posted a $573 million loss plus all the company’s financial challenges, it was high time the CEO and team looked for alternative sources of funds. And as it appears, Lampert chose his hedge fund.

The loan is to be paid back with a fair rate of 5% per annum and the beneficiary company is to chuck with 1.75% upfront. The loan is also provided in parts of $200 million each.

The loan amount plus another $665 million that the company earned from land and real estate sales means that the company, under the stewardship of Lampert, now has about $1 billion to pull it off its worrying financial state. If Sears Holdings Corp (NASDAQ:SHLD) doesn’t get its traction right financially, it might be forced to sell off more of its assets.

With such poor performance, there has been a growing concern by investors and market analysts who feel that the company’s future is bleak. Some ratings have also graded Sears Holdings Corp (NASDAQ:SHLD) poorly in terms of credit worthiness, factors that might see many investors pull out. Flitch Ratings even said that the company’s poor financial performance might make it difficult for the company to live beyond 2016.

Eddie Lampert, who is also the CEO of ESL Investments Inc., finds himself in bad light because of his affiliation with the lender; a company he founded and controls. He might not have seen this coming, but in business, you always have to look over your shoulders.

This article has been written by Victor Ochieng.

Read: Warren Buffett and Billionaires Are Crazy About These 7 Stocks