The Financial Post is reporting that Sears has recently issued a serious warning about its future in Canada. The article highlights the point that the message out of Sears Canada head office is that there is “significant doubt” in Sears’ ability to continue as a retailer.
Currently, the department store is mounting massive losses and has experienced a straight decade of declining sales. Sears has stated that it will need to secure a new source of financing if they want to remain in business.
The Financial Post points out that Sears management anticipates that cash flow levels will not be high enough to keep the business running. The article has management quoted as saying ” [cash flow levels] are not expected to be sufficient to meet obligations coming due over the next 12 months”.
How does Sears get out of this black hole? Well, it seems as if they will try everything including the possibility of selling off the department store in its entirety.
Sears has also stated that it hopes to get the funding because as you may or may not know Sears is right int eh middle of rebranding itself; offering customers off-price merchandise and a more robust e-commerce platform.
Sears has been in the news regularly concerning it’s falling stock price and continual losses. The real question is, how much longer can Sears hold on?
Source: The Financial Post