No more CIT loans for Sears suppliers
BY ASSOCIATED PRESS January 12, 2012 9:06AM
Updated: February 14, 2012 8:14AM
Sears says that CIT Group Inc. has decided to stop financing loans to suppliers waiting to be paid by the retailer.
But Hoffman Estates-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. AP