Sears plunges on report suppliers backing away

Sears vendor withholds shipments: Report
Sears vendor withholds shipments: Report   

Sears Holdings stock is tanking after reports that three insurance firms for its suppliers are shying away from the company.

Shares in Sears fell over 12 percent Wednesday morning, after briefly being halted, following a Bloomberg report that Euler Hermes Group, Coface, and Atradius Credit Insurance are scaling back coverage or cancelling policies related to the embattled retailer.

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Bloomberg also reported that at least one vendor, which asked not to be named, decided to withhold its products from Sears.

"[Sears Holdings] continues to meet all of our obligations, including paying our vendors and suppliers," the company said in an e-mailed statement. "To date we've had no material interruptions in the flow of goods to our company. We value our relationships with vendors and suppliers, and communicate with them regularly as we move through our transformation."