Sears Canada warns about financial future and possible sale

Thursday, June 15, 2017

Have you shopped at Sears recently? I know most of the stores by me have closed years ago. Looks like they are going through some financial troubles right now for the remainder of what's left.

Sears Canada warned Tuesday there are doubts about its ability to continue operating, and says it may have to restructure or be sold.

The retailer, which has been trying to reinvent itself, said its ability to keep going is dependent on obtaining additional sources of funding, which it hasn't been able to do.

In the wake of the news, shares of Sears Canada fell 27 cents to reach 87 cents on the TSX. They got as low as 50 cents earlier in the day's session.

As it issued its warning, Sears reported its first-quarter revenue dropped by 15.2 per cent from the same quarter last year.

The company said reasons for the revenue drop included:
A "significant" reduction in printed catalogues due to lower customer demand.
Some products not being available online while Sears made technology changes.
A cut in the number of its merchandise pickup locations.

The company said its loss for the first quarter was  $144.4 million, or $1.42 per share, compared to a net loss of $63.6 million, or 62 cents per share, in the same quarter last year.

Click here for the CBC news story.