Arrow-right Camera

The Spokesman-Review Newspaper The Spokesman-Review

Friday, October 23, 2020  Spokane, Washington  Est. May 19, 1883
Snow 33° Snow
News >  Nation/World

Montgomery Ward Raises Loss Estimate

Compiled From Wire Services

Montgomery Ward Holding Corp. expects its losses in the first and second fiscal quarters to total $248 million, four times more than it forecast in December, the retailer said in a letter to firms that help finance its suppliers.

The operator of department and electronics stores said it used a faulty methodology to develop the earlier estimates, according to three factors who received the letter. Factors buy accounts receivables from suppliers and assume the risks for collecting the payment.

The projection comes after the retailer reported a wider-than-expected loss of $249 million in 1996. The continuing losses are raising concerns among some factors about the Chicago-based company’s ability to keep paying its bills.

“We have put a hold on Montgomery Ward,” said Richard Posner, executive vice president of Credit Exchange, which advises suppliers on a retailer’s credit-worthiness. “We are advising our clients not to ship.”

Two other factors, who asked not to be identified, said while they are concerned about the retailer, they continue to advise clients to ship merchandise.

The Spokesman-Review Newspaper

Local journalism is essential.

Give directly to The Spokesman-Review's Northwest Passages community forums series -- which helps to offset the costs of several reporter and editor positions at the newspaper -- by using the easy options below. Gifts processed in this system are not tax deductible, but are predominately used to help meet the local financial requirements needed to receive national matching-grant funds.

Subscribe to the Coronavirus newsletter

Get the day’s latest Coronavirus news delivered to your inbox by subscribing to our newsletter.

New health insurance plans available Nov. 1 through Washington Healthplanfinder

 (Photo courtesy WAHBE)

Fall means the onset of the cold and flu season.