Some suppliers for Sears and Kmart stores would like to hedge their relationship with the struggling retailer by asking for quicker payment, sources have told MarketWatch.
Sears has responded with offers to pay some of the companies within 15 days, much faster than the more typical industry standard of 30 to 60 days, in return for discounts between 3% and 5%, sources said.
Sears would only say that it has ample inventory and continues to meet its obligations.
There’s no question that from all appearances things seem dire for Sears, so it seems natural that its vendors would get jittery. The retailer has a serious cash problem, made worse by its holiday performance as well as by these kinds of pressures. But the added costs that come with higher insurance and faster payments could help fulfill the doomsayers’ prophecy, even if it’s true that, as the company says, it is meeting its obligations.