Sears Admits It's Facing The End Times

Sears

In a filing with the Securities and Exchange Commission Tuesday, Sears Holding Corp. admitted the company is in deep trouble. The document states, "Our historical operating results indicate substantial doubt exists related to the company's ability to continue as a going concern."

The report outlines efforts to cut costs, liquidate assets and generate new funding sources. Still, the company reported a $2.2B loss last year, resorting to using funds from financing and investment activity to cover operating costs. Over the last three years, the operation lost $5B. Revenue has not grown since 2006 and has fallen by 44% in the last five years. Sears total borrowings increased by $1.2B in 2016. The company now has $13.2B in total liabilities. The report is full of ghastly stats that all point to the same conclusion: Sears is dead in the water.

Still, some Sears optimists point to the value of the company's real estate holdings. It may be too little too late. A decade ago, Sears Holding had close to 3,800 Sears and Kmart locations; now the company has 1,430. Sears stock is down over 15% in early morning trading following the report.

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