May 15 (Reuters) - Sears Holdings Corp Chief Executive Officer Edward Lampert lashed out at a supplier, which has threatened to terminate a supply deal with the struggling retailer.
Sears will fight back against suppliers "trying to take unfair advantage" of the company's problems chronicled in the media, Lampert said in a blog post on Monday. (bit.ly/2pO05Zs)
Lampert’s outburst was targeted at One World, which has threatened to file a lawsuit to end the agreement.
One World, which is a unit of Hong Kong-based Techtronic Industries, makes power tools and related accessories for Sears’ Craftsman brand.
Sears sold Craftsman to Stanley Black & Decker Inc in March, but the retailer will continue to sell the brand’s products through a perpetual license from Stanley B&D.
Techtronic was not immediately available to comment outside of business hours.
Lampert said the company had always met its payment obligations to vendors and had paid One World more than $868 million since inking the supply deal in 2007, helping the supplier “build a formidable presence in the tool industry.”
Sears’ shares were down 11.2 percent at $8.42 in afternoon trading on Monday.
Lampert’s post comes nearly two months after the company warned about its ability to continue as a going concern after years of losses and declining sales.
The CEO, who owns a majority stake in Sears, has been financing the retailer’s operations through his hedge fund ESL Investments.
“We will take the appropriate legal action to protect our rights and ensure that One World honors their contract,” Lampert said. (Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Anil D‘Silva)