https://tbsnews.net/economy/rmg/us-buyer-sears-not-paying-bangladeshi-suppliers-50-million-82930
Sears' outstanding bills are more than any other brand
10 replies (most recent on top)
They haven’t paid us since November. Now offering 30 cents on a dollar. We are about to take them to court. Eddie is a crook.
Obviously they are getting ready to file Chapter 7 (No chapter 11 this time). Way to take hundreds of small businesses down with you and screw employees over with your lies. Karma is a b–ch!!
Some shipments sold to Walmart because vendors were not paid and shipment was at the dock. Not surprised at all. Run vendors run
last poster - you are insane. Tech vendors, service providers, and most hard good suppliers don't have any type of insurance; but again way to pass the buck from transformco/ sears onto the people that tried to help them make a go of it.
Most vendors have insurance on the goods they sell to retailers, and the insurance premium goes up in instances like Sears where their future is much more in doubt. That increased cost to the vendor gets passed on to Sears... so the vendors should be safe, but it gives Sears even less profit than they would already be making if they were more secure.
When vendors are under contract and cannot terminate said contract without reason or face being sued by the procurement team then, yeah, they don't have a choice until given a reason, such as non-payment, to terminate. With payment terms thought that puts them 4-6 months in the hole. So yeah - it's so easy to blame the vendors for doing the right thing.
Vendors had to have known they wouldn’t get paid, based on past history... they have no one to blame but themselves.
No risk to Transformco. They won't be in business much longer.
There are a ton of US vendors that are in similar position - Transformco has not paid them since November for services or products. Worse is not a single Transformco employee will return any calls or emails to a lot of these vendors. There are a couple class-action lawsuits forming. Not that they will do any good when they file Chapter 7.
Again, What happen to the 1 Billion dollars Edie received?