Just recently, Sears reveals that the company has a "substantial doubt" about its ability to stay afloat following a series of rough patches in the last decade. Now that the company is putting almost everything in its stores on sale, speculations are heightened that the company might have shutter down.
USA TODAY has reported that Sears is having a storewide sale, which will last until April 9. While the report is written in a positive tone, what's with the huge discounts consumers could get, some are worried about the future of the company.
For one, consumers who bought warranties are concerned about what will be going to happen in their warranties should Sears file for bankruptcy. As reported by Business Insider, a bankruptcy lawyer said that in the event of a bankruptcy, it is possible the warranties would be dissolved. The same goes for gift cards and reward points earned through the company's loyalty program. The fate of warranties, gift cards and reward points would be decided in court. So for now, consumers are advised to use their points and gift cards before they are erased.
Meanwhile, Sears said it will honor its warranties. The company is one of the top sellers of home appliances in the U.S., and it has sold huge numbers of warranties.
The future looks gloomy for the company, which might not be able to stay in business based on its latest annual report. "Our historical operating results indicate substantial doubt exists related to the company's ability to continue as a going concern," the company said.
Since 2013, the company's revenues dropped 40 percent to $22 billion in 2016. Jason Hollar, Sear's chief financial officer, tried to reassure investors that the company remains committed to meet its financial obligations.
Meanwhile, you might want to take advantage of the discount from Sear's ongoing sale.