Sears tumbles on report vendor insurers to trim coverage
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(Reuters) — Sears Holdings Corp. shares slumped on Wednesday following a report that three of the biggest insurance firms for its suppliers were seeking to reduce coverage.
The report by Bloomberg News also said the move prompted at least one vendor to halt shipments to Sears.
Sears stock was down 12% to $26.67 after falling as much as 17.3%, which would be the largest daily percentage decline since November 2012. The slide dragged the stock near the $24.10 low hit two weeks ago, which was the lowest since January 2012.
In the past weeks, the retailer has twice turned to its billionaire CEO Eddie Lampert's hedge fund for a cash infusion, and insurers and banks had raised the cost of guaranteeing payment to vendors.
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