(by BE Dunn)
After 100 years of business together Sears will no longer carry Whirlpool-branded appliances.
Whirlpool’s CEO Marc Bitzer told investors Tuesday that the company told Sears in May that it would no longer supply branded products because it could not reach terms that were “acceptable to both parties.” He said Whirlpool will continue to supply the Kenmore products it makes for Sears.
Sears released an internal memo last week stating that Whirlpool was making demands that would’ve made it difficult to sell those name-brand appliances at a competitive price.
The two companies founded their partnership in 1916 when Whirlpool began making wringer washers for the mail order company Sears, Roebuck and Co.
Facing an onslaught of new competitors over the last decade, Sears has been attempting to cut costs where applicable. Sears Holdings Corp., also owns Kmart and between the two stores will have closed 358 storefronts in 2017 alone by year’s end.
Reports state that the change to the Sears-Whirlpool partnership is effective immediately. With Sears selling off its remaining Whirlpool inventory. Sears will also remove all products from Whirlpool subsidiaries including Maytag, KitchenAid and Jenn-Air, but will continue to provide and manufacture Kenmore.