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Sears Is Pushing Back Against Suppliers Taking Advantage Of Its Woes

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Sears Is Pushing Back Against Suppliers Taking Advantage Of Its Woes

Sears Holdings Corp (NASDAQ: SHLD)'s CEO Eddie Lampert said in early May that while his company may be struggling it most certainly isn't going bankrupt in the near term. The executive commented during the company's annual general meeting that anytime the word bankruptcy is used consumers can't "get past that word."

The Situation

While Lampert is working hard to improve the company's image among consumers, he is simultaneously dealing with suppliers who are trying to take advantage of the company's ongoing woes.

According to a Bloomberg report, Lampert publicly acknowledged that suppliers are "trying to take advantage of negative rumors," which are hurting Sears' reputation to gain better terms.

"While we are not asking to be spared from informed opinions about our business performance, the recent wave of dire predictions about our company's future have done harm to our business," Bloomberg quoted the executive as saying.

Needless to say, Lampert isn't going to give in and will do "what's right" to protect its interests along with the interests of the millions of stakeholders.

Lampert even singled out a power tools supplier named One World who supplies tools under the Craftsman brand. In fact, Sears is suing One World as the supplier wants to end its contract early under the belief that Sears could soon stop purchasing power tools. For its end, Sears argues that it hasn't breached any of the terms of the supply agreement.

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Image Credit: By Mike Kalasnik from Fort Mill, USA [CC BY-SA 2.0 (http://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commons

 

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