Sears Doubts About Future
After years of deficit, store closures and attempts to bail out, Sears retail giant now admits that its survival in the United States is only a thread.
The confession comes from the annual report that Sears Holding Corp, also owner of Kmart, filed Tuesday with the US financial markets authority.
“Our previous operating results make us very suspicious of the viability of the company,” it said in its report on its results for the year 2016, which ended on 28 January.
In total, Sears lost $ 2.2 billion last year and has not reported an annual profit since 2011. Its losses since that time amount to $ 10.4 billion.
In its annual report, the company adds that it is not certain that it will be able to raise enough liquidity by borrowing or refinancing its debt to fulfill all its obligations.
It is worth as much as $ 4.2 billion.
In the middle of the morning, the company’s title had tumbled 13% on the New York Stock Exchange.
In January, Sears sold its Craftsman tool brand to Stanley Black & Decker for $ 900 million. She now wants to sell off her Kenmore appliance stores and DieHard auto parts.
The company, founded in Illinois in 1886, has undergone an inexorable decline since the late 1990s. It was initially victimized by other retail giants such as Wal-Mart and Home Depot.
It is now faced with the popularity of e-commerce giants, such as Amazon, which allow consumers to shop from the comfort of their homes.
This is ironic, as generations of Americans and Canadians first learned this behavior through Sears catalogs.
Sears Holding Corp currently holds 11.7% of the shares of Sears Canada.