CIT (CIT) is Again Cutting Off Credit to Sears (SHLD) Suppliers - Report
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A few weeks ago it was reported CIT Group (NYSE: CIT) was cutting off loans to Sears (Nasdaq: SHLD) suppliers. The situation later appeared to resolve itself as CIT said it was again giving these so-called factor loans. Well now things look desperate again...
According to reports from Reuters Tuesday, CIT Group has again stopped providing loans to suppliers of Sears as the company awaits more information on the financial health of the retailer.
CIT is keeping Sears on a "tight leash" the article reported, citing a source close to the matter.
Sears is expected to report annual results on February 23, something which could give CIT and other lenders a better picture of the company's financial health.
With lenders like CIT cutting off credit to Sears suppliers, the retailer could be forced to draw on its own line of credit to pay for goods upfront. This in turn could further pressure the company's financial position.
After opening higher and remaining in positive territory during the early-morning session, shares of Sears Holdings are now down 4.6 percent today to $42.02.
According to reports from Reuters Tuesday, CIT Group has again stopped providing loans to suppliers of Sears as the company awaits more information on the financial health of the retailer.
CIT is keeping Sears on a "tight leash" the article reported, citing a source close to the matter.
Sears is expected to report annual results on February 23, something which could give CIT and other lenders a better picture of the company's financial health.
With lenders like CIT cutting off credit to Sears suppliers, the retailer could be forced to draw on its own line of credit to pay for goods upfront. This in turn could further pressure the company's financial position.
After opening higher and remaining in positive territory during the early-morning session, shares of Sears Holdings are now down 4.6 percent today to $42.02.
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