Sears Lender Balks At More Financing

It has become more difficult for embattled retail company Sears Holdings to raise money. It recently reported weak earnings and holiday same store sales. It also said it would close 100 to 120 KMart and Sears store locations

According to WSJ:

Struggling Sears Holdings Corp. suffered another setback when a large lender said it would no longer finance loans to suppliers awaiting payment from the company.

Sears representatives played down the decision by CIT Group Inc., the largest U.S. provider of what are known as factoring services for vendors, saying the payables the firm had financed amounted to only about 5% of the retailer’s inventory.