Publication: The Street Published Date: 1/12/2012
CIT will no longer finance some loans to Sears' suppliers who are waiting to be paid by the department store.
While Sears has been making payments on time, CIT hasn't received some financial projections it requested from the department store operator, said Jack Hendler, president of Net Worth Solutions, a merger and acquisition advisory firm.
Other factors -- those who provide loans or lines of credit to suppliers and apparel makers to tide them over until retailers make payments -- are still approving orders, he said, but are also awaiting similar information and have been cautious. "CIT decided not to wait and get their attention," Hendler said.
Several big names in the factor community had expressed concern in December over the state of Sears, saying vendors are already starting to pull back and could distance themselves further from the company if things don't change soon. View entire article.