Sears shared its doubts to keep the business afloat. It says that there is "substantial doubt" as to whether the company has the ability to continue conducting operations.
Sears' annual report revealed that the giant department store is going through a rough patch, so rough to the point where it has admitted "substantial doubts" as to whether the company should continue conducting business, reports the Business Insider.
The report includes plans of action that they might turn to in the hopes that it will generate additional liquidity. Some of these include monetizing its real estate and expanding distribution of its brands (i.e. Die Hard, Kenmore) either through selling or licensing it.
Sears, however, adds that there is no absolute certainty in which their plan could generate the funds it needs to keep going. Its revenues have dropped roughly 40 percent since 2013 to $22 billion in 2016, writes the Business Insider.
Sears is closing in on bankruptcy and this comes amidst the changing consumer habits brought about by technology and the internet. USA Today writes that those two factors have something to do with Sears' potential demise.
Customers use their phones to shop nowadays, affecting Sears' sales as it is "outdated," writes USA Today. The internet is of no help as well as it slowly makes traditional department stores obsolete, it writes.
Furthermore, Sears cannot compete with specialized retailers such as Home Depot or Best Buy. These stores have multiplied and offer a particular line of products.
Aside from the decline in sales, USA Today writes that Sears committed a mistake by merging with Kmart in 2004. The two were already struggling and merging it together has led Sears to sell $30 billion worth of its credit portfolio.
If Sears goes, it will bring Kmart down with it. For more news and updates, follow Jobs & Hire.