NEW YORK (Reuters) – Sears is back into court, less than one month after emerging from bankruptcy protection. <\/p>\n
Craftsman brand products are shown for sale inside a Sears department store in La Jolla, California, U.S., March 22, 2017. REUTERS\/Mike Blake<\/span><\/p>\n<\/figcaption><\/div>\n<\/div>\n The retailer was sued on Wednesday by Stanley Black & Decker Inc, which accused it of breach of contract and trademark infringement over its new line of professional-grade mechanics tools under the Craftsman Ultimate Collection brand. <\/p>\n Sears did not immediately respond to requests for comment. The complaint was filed in Manhattan federal court. <\/p>\n Craftsman had been an iconic Sears brand before Stanley paid about $900 million for it in March 2017, while giving Sears what it called a \u201climited\u201d license to sell some Craftsman products. <\/p>\n But according to the complaint, Sears breached the license agreement by launching its new tool line and touting its stores as \u201cthe real home of the broadest assortment of Craftsman.\u201d <\/p>\n Stanley said the tagline falsely implies that other Craftsman products are \u201csomehow illegitimate.\u201d <\/p>\n It also said Sears\u2019 actions threaten to confuse shoppers and irreparably harm Stanley\u2019s own Craftsman brand and trademarks, as well as its goodwill and customer relationships. <\/p>\n Sears emerged from Chapter 11 in February after longtime Chairman Edward Lampert, who oversaw its years-long descent into bankruptcy, won court approval for a $5.2 billion takeover, which included the Craftsman licensing rights. <\/p>\n The reorganized company was expected to have about 425 Sears and Kmart stores, down from roughly 3,500 when those companies merged in 2005. Sears brands also include DieHard and Kenmore. <\/p>\n The case is Stanley Black & Decker Inc v Transform Holdco LLC, U.S. District Court, Southern District of New York, No. 19-02081. <\/p>\n Reporting by Jonathan Stempel in New York; Editing by Richard Chang<\/p>\n<\/div>\n<\/div>\n