May 22 (Reuters) - The department store chain Dillard's

sued Wells Fargo ( WFC ) on Thursday, saying the bank

repeatedly breached a since-abandoned co-branded credit card

relationship, causing tens of millions of dollars in losses.

In a heavily redacted complaint filed in Manhattan federal

court, Dillard's said Wells Fargo ( WFC ) became an "unwilling and

incapable partner" after reaching consent orders in 2016 and

2018 with the U.S. Consumer Financial Protection Bureau and

Federal Reserve to address problems in its banking practices.

The Little Rock, Arkansas-based retailer said it was

then "shocked" to learn last June that the fourth-largest U.S.

bank had effectively decided to abandon the co-branded card

market without informing its "premier partner"--Dillard's

itself.

Dillard's said it welcomed the end of its decade-long

relationship with Wells Fargo ( WFC ) in light of the San

Francisco-based bank's actions, but that Wells Fargo's ( WFC )

"bad-faith conduct" continued even during the termination

process.

Wells Fargo ( WFC ) did not immediately respond to requests for

comment. Julie Guymon, a Dillard's spokeswoman, declined

additional comment.

Founded in 1938, Dillard's recently had 272 stores in 30

U.S. states. Net income totaled $593 million on revenue of $6.59

billion for the year ending February 1, 2025.

In January 2024, Dillard's entered a co-branding

relationship with Citigroup ( C/PN ), with that bank purchasing

existing Dillard's credit card accounts and Mastercard ( MA )

serving as the payment network.

The case is Dillard's Inc et al v Wells Fargo Bank NA,

U.S. District Court, Southern District of New York, No.

25-04330.