CIT to add surcharge to J.C. Penney invoices -Dow Jones
March 14 (Reuters) - CIT Group Inc plans to start charging J.C. Penney Co a 1 percent surcharge on all invoices, as the business lender feels the retailer presents a greater credit risk, Dow Jones reported on Thursday, citing industry sources.
An industry source told Dow Jones the surcharge would begin April 1.
Penney did not return multiple requests seeking comment. CIT spokesman Curt Ritter said CIT does not comment on client or customer credit decisions.
J.C. Penney shares fell 1 percent to $15.50 in Thursday afternoon trading.
The news came just weeks after the department store chain reported dismal results for the holiday quarter, sharply lower same-store sales.
It is not unusual for business lenders to keep struggling retailers on a tight leash.
CIT, run by Wall Street executive John Thain, halted loans to Sears suppliers in January last year after the company posted dismal holiday sales numbers.