COMMENTARY It seems like many moons ago that Sears (SHLD) owner and prominent hedge-fund investor Eddie Lampert was being compared to Warren Buffett. How times change.
Things look grimmer than ever for the struggling retailer after CIT Group, one of the nation's largest commercial lenders, moved this week to halt credit to Sears suppliers. CIT's concern -- that Sears may not be able to pay the finance firm for the loans it makes to manufacturers for shipments to the company.
It isn't a death blow for Sears. The company has plenty of money in the bank to carry on, as a Sears spokesman noted in seeking to minimize the significance of CIT's move. But the lender's importance in the so-called factoring business could sow doubt among other lenders and suppliers that deal with Sears. As one corporate executive whose company has worked with CIT tells the Chicago Tribune :
I wouldn't blame that directly on Sears. Too many things are made from plastic now that should be still made of metal. This is the fault of the manufacturers and extremely high steel prices more than the fault of Sears. It's like trying to find something manufactured within the U.S. All too often, there are no other options available. I spent $800 on a Kenmore dishwasher from Sears a year-and-a-half ago. Aside from the "innovative" water-saving technology that causes it to take longer to wash than an older model, I get the same clean on my dishes that I always have with any good dishwasher. Of course I can't credit Sears for the fact this dishwasher actually does its job, but give credit to the manufacturer for building a good machine. The one I replaced with this one was a piece of garbage that was basically a glorified rinser. Dirty dishes in meant dirty dishes coming out. Again, that was the fault of the manufacturer, not the fault of the store selling the piece of junk. PS: Perfectly good seat broke away from it's PLASTIC FRAME."We are looking for other federal and state resources, and we'll definitely help the owners out in this situation if we can. But right now, we don't have the resources." The city is looking at between 12 and 20 structures in two West Side neighborhoods

What's interesting about department stores is that they are an amalgamation of a bunch of different kinds of stores, clothing stores, appliances, etc. Credit in the department store in the early 20 th century was a service, like delivery.
Optimists might look at the modestly brighter prospects for the US housing market and expect a boost to Sears's appliance, hardware and other home businesses. Some investors also could take comfort in the retailer's considerable real-estate holdings
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Suning Appliance Co, China's largest home appliance retailer by sales volume, donated 40 million yuan ($6.35 million) to charity as it celebrated its 21st anniversary. Among the funds, 30 million yuan will be used to help programs initiated by the
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