Oh no! If you're a fan of Sears or Kmart, you might want to take a deep breath before reading this. The company that operates the department stores just announced "substantial doubt" about their ability to stay in business.
Specifically, in a filing with the Securities and Exchange Commission, Sears Holdings said, "Our historical operating results indicate substantial doubt exists related to the company's ability to continue as a going concern."
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Here's what you need to know.
If Sears Holdings is able to borrow more and tap cash from more of its assets, it may be able to keep those beloved stores in business. As the company put it in the filing, it is working to find ways to do so. However, it says that it cannot be certain they will find a way.
In other words, there's no guarantee that they'll be able to keep them running much longer. But if you've been tuning in to Sears and Kmart news from earlier this year, this may not come as a complete and utter shock.
Back in January of this year, Sears announced plans to close down 150 Kmart and Sears stores in 40 different states. Some of those stores closed as early as that January, while others shuttered in March. Sears Holdings confirmed that the reason for closing all these stores was financial.
But the trouble for Kmart and Sears started long before 2017 even began. Last year, the companies made an announcement that they were shuttering 68 stores, thus laying off 10,000 workers. And reportedly, sales for both stores have actually been down for years as neither store has been able to keep up with their competitors.
And Sears Holdings' latest filing mentions this competition.
"We acknowledge that we continue to face a challenging competitive environment," it said in the statement.
Such sad news for Kmart and Sears fans!
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