Sears Canada is considering its possible options as the retailer’s ‘ability to continue’ remains doubtful. The company is even mulling the possible sale of the business, CTV News reports.
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Sears says management currently predicts that forecasted cash flows from operations are unlikely to be enough to meet the obligations in the next 12 months.
The retailer says it previously expected to be able to borrow $175 million, which has dropped to only about $109 million. Sears also lacks some other assets that could be monetized fast enough to help the company stay afloat.
The company is reviewing its strategic alternatives after it reported a loss off $144 million in the first quarter, along with a 15.2% decline in revenue, compared to the first three months in 2016.
While there was some positive dynamic in sales at the stores, revenue still dropped about $90 million to $505.5 million. The reason for that was a drop in the catalog and web-based sales.
Sears Canada decided to postpone its annual meeting, initially scheduled for Wednesday, indefinitely.