CHICAGO — Children’s clothing company SCI Apparel, formerly known as Sprockets, is suing Hoffman Estates-based Sears Holdings for failing to pay the company for its shipments.
SCI said in a lawsuit filed Monday in Cook County Circuit Court that Sears owes it about $4 million for clothing orders and another $750,000 for fixtures and signs.
According to the lawsuit, Sears would “routinely and deliberately” cancel orders after they’d been placed and then refuse delivery of those items after they’d been produced and shipped. SCI also contributed financing for Sears to buy signs that were meant to develop a “store within a store” concept featuring Sprockets clothing. But Sears, the lawsuit says, never developed the concept.
A Sears spokesman said the company does not comment on pending litigation.
Sears has been struggling to cut costs as it shifts to an “asset-light” business model. The company has lost money for 10 straight quarters — including $1.5 billion in the 39 weeks ended Nov. 1.
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