Sears Holdings Corp. has resolved its dispute with One World Technologies Inc., a vendor that supplies the department store operator with tools carrying the Craftsman brand name, the retailer said June 5 on its website.
"The matter has been resolved to the mutual satisfaction of both parties and we look forward to continuing our relationship with One World," the company said in an update to a May 15 blog post by Chairman and CEO Edward Lampert that noted that the tool supplier had intended to file a lawsuit against Sears unless the arrangement between the two entities was altered.
As a result, Sears filed a legal complaint against One World, a subsidiary of China-based Techtronic Industries Co. Ltd. The complaint, filed in Illinois Circuit Court of Cook County, petitioned the court to declare that Sears had fulfilled its obligations under the supplier agreement and to ask One World do the same.
The public nature of the disagreement with a vendor caused concern among investors in a company already deemed financially troubled, with Sears' stock price dropping 12.4% by the end of trading May 15.