March 14 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
An industry source told Dow Jones the surcharge would begin
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
The news came just weeks after the department store chain
reported dismal results for the holiday quarter, sharply lower
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.