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

unsungivy
Frequent Contributor

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

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.

Sock'd - AU - Business -
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Message 1 of 21
20 REPLIES 20
mark3038
Established Contributor

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

Thank you for the post.

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

Thanks again

Mark

Please note; My postings are my opinion only. You can accept them or reject them. Thanks, Mark
Message 2 of 21
Loquat
Moderator Emeritus

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

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.
Message 3 of 21
SunriseEarth
Moderator Emeritus

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

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.  



Start: 619 (TU08, 9/2013) | Current: 788 (TU08, 10/6/21)
AMEX Cash Magnet $64000 | Discover IT $46000 | BofA BBR #1 $43900 | BoA BBR #2 $31100 | Venmo VS $30000 | NFCU More Rewards AMEX $25000 | Macy's AMEX $25000 Store $25000 | Cash+ VS $25000 | Altitude Go VS $25000 | Sony Card VS $23750 | GS Apple Card WEMC $20000 | Freedom Flex WEMC $20000 | WF Active Cash VS $18,000 | Cap 1 QS WMC $17250 | Disney VS $15000 | FNBO Evergreen VS $15000 | Target MC $14500 | Jared Gold Card $13000 | Amazon VS $12000 | Citi Custom Cash MC $11600 | AARP VS $8800 | Belk MC $7600 | ~~
Message 4 of 21
Brian_Earl_Spilner
Community Leader
Mega Contributor

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

This is lame 😑

    
Message 5 of 21
pizza1
Community Leader
Super Contributor

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

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

My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013...I'm in the home stretch now!
Message 6 of 21
AverageJoesCredit
Legendary Contributor

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

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

Message 7 of 21
Brian_Earl_Spilner
Community Leader
Mega Contributor

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

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

    
Message 8 of 21
macinjosh
Senior Contributor

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


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

Same @pizza1 




Samsung Financing TD Bank $3,200


Message 9 of 21
unsungivy
Frequent Contributor

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

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)

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Message 10 of 21
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