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Electrolux comments on impact from development in Sears
The Swedish white goods manufacturer has commented the announcement that one of its major US customers, Sears Holdings Corporation, has filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code.
Electrolux says in a press release that the company intends to work with Sears' restructuring officer to explore the prospects of continuing its business with Sears, while continuing to manage the financial and operational exposure.
The Swedish company has been actively planning for various Sears' contingencies while also growing the business with other customers. Therefore, Electrolux does not currently assess a need for material one-time costs as an immediate consequence of Sears' restructuring.
“However, while it is difficult to predict the outcome of Sears' attempt to restructure its business and the various scenarios it may entail, it cannot be ruled out that there may be a material impact on the future sales and earnings of Electrolux business area Major Appliances North America. The business area's exposure to Sears is currently about 10 percent of its total revenues,” the company writes in an update.
