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Sears CEO's public feud with a top supplier has been mysteriously resolved

Aug 26, 2024, 05:24 IST
ReutersSears CEO Eddie Lampert.Sears CEO Eddie Lampert eviscerated a top tool vendor in a blog post last month, then filed a lawsuit against the company claiming that it refused to honor its contract with the retailer.

The conflict between the two companies has since been resolved, Sears said Monday. The retailer declined to provide any details on what kind of agreement was reached.

In a May 15 blog post, Lampert said One World Technologies was trying to "embarrass" Sears and "take unfair advantage" of the retailer by changing the terms of its supplier agreement or threatening to cancel its contract with Sears altogether.

One World Technologies is a subsidiary of China-based Techtronic Industries that manufactures power tools and other products under the Craftsman brand.

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On Monday, Sears added an update to the blog post that reads: "The matter has been resolved to the mutual satisfaction of both parties and we look forward to continuing our relationship with One World."

When asked for details on the resolution and whether Sears' had dropped its lawsuit, Sears spokesman Howard Riefs wrote in an email, "The update stands on its own."

One World Technologies and Techtronic Industries did not immediately respond to a request for comment.

Sears' lawsuit claimed that One World had threatened to cancel its contract with Sears because of concerns about the retailer's financial stability unless Sears agreed to cut back its orders.

Sears said it has always paid its suppliers on time and claimed One World Technologies was trying to take advantage of negative rumors and media reports about Sears' viability to change the terms of its contract.

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"We will not simply roll over and be taken advantage of," Lampert wrote in the blog post.

He said One World planned to file a lawsuit against Sears "as they seek to embarrass us in the media to force us to let them out of their contract. 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."

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