Sears Holdings Is Sued by Owner of Small Stores

A group of Sears store owners sued the chain, claiming its acquisition by Kmart created unfair competition by making its products available at Kmart and other stores.

The Dealer Store Owners Assn., which represents more than 200 Sears stores owned and operated by families or individuals, filed suit against Sears Roebuck & Co. in federal court.

Sears has about 800 dealer stores, which sell Sears appliances, electronics and tools in markets that are too small for a Sears department store.

Sears was acquired by Kmart last year.

The suit claims Sears breached its contracts with the dealers by selling its products at discount chain Kmart, which has about 1,500 stores, and in other channels.