SPOKANE, Wash.–The decline of the once-great American retailer Sears is taking some credit unions with it.
While the bankruptcy filing by Sears is obviously separate from the performance of CUs chartered to serve its employees, the company’s misfortunes have affected credit unions, as well. Among those affected: Sears Spokane Employees FCU, which said it will merge into PrimeSource Credit Union.
Mark Smith, CEO of Sears Spokane, told the Spokane Journal he began searching for a credit union with which to merge about two years ago. “With all of the issues that Sears Holdings Corp. has had over the last 10-plus years, it’s had a dramatic effect on the credit union itself,” Smith told the publication.
According to Smith, there were once 27 Sears credit unions throughout the U.S., Smith says, with Sears Spokane Employees FCU one of the last of those credit unions to remain open. Membership in Sears Spokane is open only to Sears employees and their family members,
Sears Spokane EFCU has nearly $3.6 million in assets and approximately 528 members.
PrimeSource and Sears Spokane have each received regulatory approval, and have now completed consolidating their data systems, according to Smith.
PrimeSource CEO Margaret Burkholz told the Spokane Journal Smith and one employee from Sears Spokane will join PrimeSource, bringing the credit union’s total number of employees to 24. Smith will be loan manager.
PrimeSource CU has approximately $77 million in assets and 7,000 members.