Forwarders and manufacturers have been warned to be wary of contracts with Sears after the US retailer admitted “substantial doubt exists related to the company’s ability to continue as a going concern”. According to Reuters, suppliers have gone into defensive mode, wary of losing payments if the retailer fails. A former Sears executive said suppliers would likely ship smaller quantities, asking for swift payment, to stores that are already “pathetically badly inventoried”. However, Sears’ CFO said the business was “viable”, following a new secured loan facility. Suppliers remain cautious, however.
By Alex Lennane