Sears says vendor One World threatens to sue to break its contract
Source: Chicago Daily Herald
Business updated: 5/15/2017 11:33 AM
Sears says vendor threatens to sue to break its contract
Anna Marie Kukec
Hoffman Estates-based Sears Holdings Corp. Chairman and CEO Edward Lampert said Monday that a vendor has threatened to sue so it could break its contract with the retailer.
China-based One World, a subsidiary of Techtronic Industries, makes power tools and accessories for Sears under the Craftsman brand. Sears said it has paid One World more than $868 million since 2007. One World now wants to get out of its contract, Lampert said in a blog.
"One World has informed us of their intention to take the very aggressive step of filing a lawsuit against us as they seek to embarrass us in the media to force us to let them out of their contract," Lampert wrote. "But Sears has nothing to be embarrassed about -- we have lived up to our word under our contract, and we will take the appropriate legal action to protect our rights and ensure that One World honors their contract."
However, Sears spokesman Chris Brathwaite did not immediately say when or exactly how Sears was informed that One World intended to file a lawsuit. A document indicating such a threat to sue was not immediately provided.
Sears Holdings, parent company of Sears and Kmart stores, has been losing money, facing stiff competition, closing stores and laying off workers. Lampert said last week during the company's annual shareholders meeting that negative headlines have acerbated its troubles by allowing vendors to try to take advantage of the retailer. Lampert said One World is an example of a troubling trend.
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