CIT to stop financing loans for Sears suppliers
HOFFMAN ESTATES, Ill.
Sears says that CIT Group Inc. has decided to stop financing loans to suppliers waiting to be paid by the retailer.
But Hoffman Estates, Ill.-based Sears Holding Corp. says the decision won’t have a big impact on its operations. It says that CIT’s payable represented less than 5 percent of its inventories.
New York-based CIT Group Inc., which makes loans to small and mid-size businesses, says it doesn’t comment on specific customers.
Sears says it disagrees with CIT’s decision, noting that other lenders are still financing the loans. It also pointed to its $4.2 billion in liquidity, along with its recent restructuring moves and cost cuts.
But last week, the company said it expects its fourth-quarter profit to be half of what it was last year.
Sears shares fell 2.7 percent to $32 in morning trading Wednesday.
Article source: http://www.businessweek.com/ap/financialnews/D9S7GC4O0.htm
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