Citibank pays Sears $425 million to extend credit card partnership

Citibank announced on Monday that it would pay Sears Holdings Corp. $425 million to extend a private label credit card arrangement with the struggling retailer.

In exchange for an extension until Dec. 31, 2020, Sears will no longer be able to purchase some assets that are tied to the program. The new “Shop Your Way” card will give customers additional points back on gas and grocery purchases, as well as on purchases made at Sears and Kmart stores.