Court Tells Sears to Pay Memo Vendors

RAPAPORT... Sears Holdings Corp. must pay suppliers for consignmentgoods its customers buy during the bankrupt retailer's closing-down sales,according to a court filing last week. Vendors, including diamond manufacturer Rosy Blue andjewelry supplier Vijay Gold Designs, had objected to the department store's previousclosure plans, as they feared Sears would sell off products they had shipped toit on memo. In an October 25 update, judge Robert Drain instructed Sears to setup a special account for proceeds of any sales of those goods, and use it to transferfunds to consignment vendors. Sears filed for Chapter 11 on October 15, and plans to close142 stores.Image: Sears store, Toronto, Canada.