Without insurance, some vendors balk at stocking Sears' shelves

[Eugene]

Source: Reuters

#BUSINESS NEWS AUGUST 25, 2017 / 1:07 AM / 6 HOURS AGO

Without insurance, some vendors balk at stocking Sears’ shelves

Jessica DiNapoli and Richa Naidu
8 MIN READ

(Reuters) - U.S. department store operator Sears Holdings Corp is having trouble stocking shelves, as some vendors have fled while others are demanding stricter payment terms because of difficulties hedging against default risk.

The strain in Sears’ supply chain is exacerbated by the scarcity and high cost of a type of vendor insurance known as accounts receivable puts, which ensure a supplier will be paid even if the retailer files for bankruptcy, according to interviews with Sears’ vendors and insurance brokers.

“It’s too expensive,” Michael Fellner, owner of Montreal-based women’s wear company Lori Michaels Apparel & Manufacturing Inc, said of the specialized vendor insurance. He said he stopped shipping to Sears in March, when his insurer stopped providing coverage.

Two other small vendors told Reuters they stopped supplying Sears this year because they could not afford the insurance, whose cost spiked after Sears warned in March of “substantial doubt” over its ability to continue as a going concern. They asked not to be identified discussing confidential commercial arrangements.

-snip-

Read more: http://www.reuters.com/article/us-sears-vendors-insight-idUSKCN1B50E9

[msongs]

1. same terms as dealing with trumps: cash payment in full before any goods/services provided nt

[kimbutgar]

2. I had to buy a refrigerator and brought it at Best Buy instead of sears

I brought a refrigerator from Sears in 2013 and it started leaking paid Sears $300 to get it fixed it was still leaking. Brought another refrigerator at Best Buy instead. I don't trust Sears anymore and wouldn't never buy another appliance fro them. The quality has gone down and people notice it. I bet these vendors are seeing that the chain is going down. Which will result In a lot of people in red states losing their jobs. Will twitler blame Obama for the unemployment numbers rising?

[juxtaposed]

3. an american icon is going down the shitter b/c the ceo is milking it for everything

it's worth. Selling its brands off for short term returns leaving sears a shell of what it was.
Fuck vulture capitalism