Jan 11 CIT Group Inc will no
longer provide loans to Sears Holdings Corp suppliers
to finance their shipments to the retailer, a Bloomberg report
said, citing two people familiar with the matter.
CIT Group, the business lender run by Wall Street executive
John Thain, will no longer approve credit for orders after
today, the report said, citing unnamed sources.
At the end of December, Sears had about $4.2 billion of
liquidity, including cash balances of about $0.9 billion, Sears
spokeswoman Kimberly Freely said in an email to Reuters.
"We disagree with their (CIT's) action, in fact we'd point
out that other factors are approving shipments to Sears Holdings
and CIT's payables represented less than 5 percent of
inventories," Freely said.
The news comes within days of Hoffman Estates,
Illinois-based Sears posting disappointing holiday sales
numbers, and announcing the closure of as many as 120 stores.
CIT could not be reached immediately for a response.