Sears suppliers demand return of inventory

Major
suppliers are demanding that Sears return their
inventory.
AP

• GE Appliances, Electrolux, Whirlpool,
  Serta Simmons Bedding, and more than two dozen other suppliers
  are demanding that Sears
  return millions of dollars in goods that were shipped to the
  company in the 45 days leading up to its
  October 15 bankruptcy filing.
• The suppliers are prohibiting Sears
  from selling the items, which could severely impact the
  retailers’ holiday sales.
• Sears filed for Chapter 11 bankruptcy protection last
  month.

Major Sears suppliers including GE Appliances, Electrolux,
Whirlpool, and Serta Simmons Bedding are demanding that the
retailer immediately return their inventory of refrigerators,
washers, dryers, mattresses, and other goods. 

The companies are demanding the return of inventory shipped to
Sears and Kmart stores in the 45 days before Sears Holdings filed
for bankruptcy, saying that Sears knew it was insolvent at the
time of the shipments, according to court filings. 

Serta Simmons Bedding is asking for the return of $1.8 million in
goods. GE Appliances, Electrolux, and Whirlpool did not disclose
the value of the inventory they are requesting, citing concerns
about confidential information. 

Read more:
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More than two dozen other suppliers have demanded the return of
their inventory as well, including the snack-food maker J.M.
Smucker Company and the power-tools manufacturer Great Lakes
Technologies. The value of the inventory requested is more than
$500,000 in several cases.

In letters sent to Sears, many of these suppliers have prohibited
the retailer from selling, disposing, or using any of the
reclaimed goods. That could severly impact Sears’ sales during
the critical holiday season.

Sears filed
for bankruptcy in October, after years of
closing stores and
selling off assets amid crippling
sales declines.