Eddie Lampert’s relationship with Sears’ suppliers just got a little uglier.
CIT — the commercial-lending giant headed by former Merrill Lynch boss John Thain — told Sears this week it’s clamping down on credit for merchandise deliveries to the 2,200 full-line and specialty stores, sources said.
The notice from CIT, given late Tuesday, followed a bitter dispute over Sears’ refusal to supply more information about its faltering finances, which have increased the risks of lending for its suppliers, according to sources briefed on the situation.
“Let the games begin,” said a top executive at a so-called factoring firm which, like CIT, extends credit for retail deliveries made by smaller manufacturers.
To be sure, industry insiders said most factoring firms are approving Sears deliveries, albeit at steeper rates and with tacked-on fees.
In a statement yesterday, Sears noted that less than 5 percent of its inventory is factored by CIT, and said it has “more than adequate liquidity and ample resources at our disposal.”
Separately, Lampert bought 4.46 million shares of Sears Holdings stock, or roughly $140 million worth, from ESL Investments, the Greenwich, Conn., hedge fund that is part of his $9 billion investment company, according to a regulatory filing.
The filing did not give a reason for the purchase and Lampert did not comment on the transaction, according to reports.
Sears shares have fallen nearly 60 percent over the past year and they were likely a drag on ESL’s performance.