Sears' Stock Plunges Toward Worst 3-day Stretch In 2 Years Amid Concerns Over Losing Suppliers

Shares of Sears Holdings Corp. plunged 11% in afternoon trade Monday, putting them on course to suffer their worst three-day stretch in nearly two years, after Chief Executive Eddie Lambert revealed that a supplier intends to file suit against the department store chain to get out of a supply agreement. Lambert said in Sears' corporate blog that supplier One World, which Sears has had a business relationship for nine years, is trying to take "unfair advantage" of "negative rumors" about Sears' prospects, by threatening to refuse to perform under the supply deal unless Sears agrees to what Lambert believes are "unreasonable" demands. He said One World is looking to "embarrass us in the media" by filing a lawsuit 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 One World honors their contract," Lambert wrote. Sears's stock has plunged 25% in three sessions, the biggest three-day percentage decline since it plummeted 27% in the three days ending June 11, 2015. The selloff was kicked off on Thursday after disappointing results from Macy's Inc. cast a pall fellow department store shares, then continued on Friday after J.C. Penney Co. Inc.'s disappointing results. Sears shares have dropped 9.5% year to date, while the SPDR S&P Retail ETF has slipped 4.3% and the S&P 500 has gained 7.3%.