Sears Canada seeks buyer, doesn’t expect to have enough cash flow
The struggling retailer said it doesn’t expect to have enough cash flow over the next 12 months to meet its obligations.
It’s the latest sign of how the retail sector is being upended by numerous factors, including the rise of online shopping.
“The company continues to face a very challenging environment with recurring operating losses and negative cash flows from operating activities in the last five fiscal years, with net losses beginning in 2014,” Sears Canada said in a statement.
“While the company’s plans have demonstrated early successes, notably in same-store sales, the ability of the company to continue as a going concern is dependent on the company’s ability to obtain additional sources of liquidity in order to implement its business plan.”
Revenues for the first quarter fell 15.2 percent, as sales continue to decline at the company since it was divested off from parent Sears Holdings Corp in 2012.
Same store sales increased by 2.9 percent in the first quarter. ■