Sears, once the icon of North American retail has seen brighter days and says that there is “substantial doubt” that it will be able to keep its doors open.
Company shares have continued on a downward trend and millions have been funneled through the hedge fund of Chairman and CEO Edward Lampert to keep Sears afloat but with sales fading, it is burning through cash.
According to a regulatory filing late Tuesday, Sears Holdings Corp. lost more than $2 billion last year. Adjusted for one-time charges, its loss was $887 million.
Sears has been selling assets, most recently its Craftsman tool brand. But it says its pension agreements may prevent the spin-off of more businesses, potentially leading to a shortfall in funding.
Sears, which employs 140,000 people, announced a major restructuring plan in February with hopes of cutting costs by $1 billion through the sale of more stores, jobs cuts and brand asset sales as well as a reconfiguration of its debts.
BUT, the bottom line is more people need to buy their products and even online, Sears has tried to “up” its presence, but is having a hard time disguising its age and many stores seem to reflect its need for updates.
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