SEARS AND ITS CREDIT ISSUE: Credit firms, including a few factors, have decided not to approve January deliveries for orders to be shipped to Sears Holdings Corp., which operates retailers under the Sears and Kmart nameplates.
One credit analyst said this is “normal” for this time of year when payment is on 60-day terms. Market sources said the major vendors are still supporting the retailer. According to another source familiar with Sears’ vendor list, “less than 3 percent of the company’s gross inventory is factored.” A spokesman for Sears declined comment.
One credit source said factors are still checking and approving orders for January deliveries to other major retailers.