topic Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio: UPDA in Credit in the News

Citibank has exercised it's "early termination" clause with the Macy's portfolio

unsungivy — Wed, 28 Jul 2021 17:41:42 GMT

https://www.fool.com/investing/2021/07/10/1-big-risk-for-macys-shareholders/

From the article:

The long-term agreement with Citibank gave the bank an early termination option if sales in any 12-month period at Macy's fell more than 34% compared to the period from July 2006 to June 2007. Because of the impact of the COVID-19 pandemic, sales for the 12-month period ending in February 2021 fell far enough to trigger this option.

In its most recent quarterly report, the company revealed that Citibank exercised its early termination option on June 4. Macy's has six months from that date to decide to purchase the credit card receivables itself or to choose a new credit card partner to purchase them on its behalf. It then has six additional months to complete the transaction.

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio

Anonymous — Wed, 28 Jul 2021 21:05:58 GMT

Thank you for the post.

Great to know what is going on with my new Macy's AX card

Thanks again

Mark

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio

Loquat — Wed, 28 Jul 2021 23:15:16 GMT

Interesting. Thanks for sharing. Hopefully they're able to work something out or at least pick up a new partner as the Macy's card is somewhat popular around these here parts.

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio

SunriseEarth — Fri, 30 Jul 2021 03:52:15 GMT

I'm guessing that Citi's endgame is to negotiate a better deal for themselves. I would think a lot of other creditors would be interested in the Macy's portfolio, if Macy's does decide to quit playing ball with Citi.

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio

Brian_Earl_Spilner — Fri, 30 Jul 2021 04:07:29 GMT

This is lame 😑

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio

pizza1 — Sun, 01 Aug 2021 21:34:42 GMT

please please let my card upgrade to the amex version before anything happens, LOL

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio

AverageJoesCredit — Fri, 06 Aug 2021 19:14:30 GMT

If it changes, would be interesting to see if the race for 25k limits for limited spend ends. Best card around for cranberry padding imo.

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio

Brian_Earl_Spilner — Sat, 07 Aug 2021 02:21:44 GMT

I'm just glad they're still doing increases. Just got another 1500 from them.

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio

macinjosh — Sat, 28 Aug 2021 21:28:45 GMT

@pizza1 wrote:
please please let my card upgrade to the amex version before anything happens, LOL

Same @pizza1

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio

unsungivy — Wed, 01 Sep 2021 13:12:54 GMT

Just got the upgrade offer, finally, on the 28th, woot! Been "working" on it recently (a few purchases (still Silver though), and increased limit to 5k... the most recent purchase/payment of $62 seems to have been enough to trigger it after 10 years and 3 months)

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio: UPDATED

unsungivy — Tue, 04 Jan 2022 14:18:32 GMT

Finally found an update on this:

https://www.macysinc.com/investors/news-events/press-releases/detail/1730/macys-inc-and-citibank-n-a-sixth-amendment-to-the

Long story short: Macy's+Citibank to March 2030

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio: UPDA

CYBERSAM — Tue, 04 Jan 2022 20:16:48 GMT

Sweet! Didn't want to make the change after recent upgrade! 👍👍

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio: UPDA

BearsCubsOtters — Tue, 04 Jan 2022 22:01:47 GMT

@unsungivy wrote:
Finally found an update on this:

https://www.macysinc.com/investors/news-events/press-releases/detail/1730/macys-inc-and-citibank-n-a-sixth-amendment-to-the

Long story short: Macy's+Citibank to March 2030

Thank you! I was wondering what happened with that as December 2021 should have been an announcement. I wouldn't have minded Goldman Sachs but I am glad it is staying with Citibank for the SP CLI.

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio: UPDA

1GaDawg85 — Wed, 05 Jan 2022 01:20:54 GMT

glad to see that Citi is holding onto the portfolio!

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio: UPDA

M_Smart007 — Wed, 05 Jan 2022 03:05:10 GMT

I am "Double" glad that Citi will continue the relationship with Macy's

@unsungivy, Thank you for posting the update

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio: UPDA

iced — Wed, 12 Jan 2022 20:29:48 GMT

Is this news related to why I got a notice that my old Macy's store card just got closed out of the blue? It's fine as I haven't used it in years, but the timing is at least interesting.

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio: UPDA

K-in-Boston — Wed, 12 Jan 2022 23:59:10 GMT

@iced wrote:
Is this news related to why I got a notice that my old Macy's store card just got closed out of the blue? It's fine as I haven't used it in years, but the timing is at least interesting.

Doubtful. It just means that Citi could have exercised the option to divest itself of the portfolio. Most likely it was just the card being dormant for too long.

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio: UPDA

LADave — Thu, 17 Feb 2022 15:15:48 GMT

@BearsCubsOtters wrote:
@unsungivy wrote:
Finally found an update on this:

https://www.macysinc.com/investors/news-events/press-releases/detail/1730/macys-inc-and-citibank-n-a-sixth-amendment-to-the

Long story short: Macy's+Citibank to March 2030
Thank you! I was wondering what happened with that as December 2021 should have been an announcement. I wouldn't have minded Goldman Sachs but I am glad it is staying with Citibank for the SP CLI.

GS has SP CLIs for their Apple Card and probably also their GM Rewards card. They also have SP applications for both cards. 😉

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio: UPDA

Royalbacon — Mon, 21 Feb 2022 18:00:01 GMT

Has Citi done this at all with Sears?

If they're not happy with falling sales at Macy's, they certainly can't be happy with Sears then you would think...? Sears is in much, much, much more dire straits then Macy's has ever been.

Re: Citibank has exercised it's "early termination" clause with the Macy's portfolio: UPDA

FinStar — Tue, 22 Feb 2022 18:59:28 GMT

@Royalbacon wrote:
Has Citi done this at all with Sears?

If they're not happy with falling sales at Macy's, they certainly can't be happy with Sears then you would think...? Sears is in much, much, much more dire straits then Macy's has ever been.

The Sears portfolio is handled by Citi Retail, not DSNB. Each Citi entity has different contractual agreements with their respective partnerships. FWIW, even though all Sears brick and mortar stores have closed, there's still an online presence + the Sears credit cards are still alive and kicking (for now at least).