Sears nears tears

22 Mar 2017 By Jennifer Saba, Richard Beales Follow @jennifersaba

The troubled U.S. retailer warned it could be headed for bankruptcy after a 12 pct decline in sales and more losses. The hedge-fund boss’s long quest – and drip feed of credit – to turn Sears around looks destined to fail, but along the way he has hedged some of his bets.

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Sears said in an annual report filed on March 21 that substantial doubt exists in the company’s ability to continue as a “going concern.” The U.S. retailer warned if it continues to experience operating losses it may not be able to access additional funds under its credit agreement.

The company said that revenue fell 12 percent to $22.1 billion for the year ending Jan. 28 compared to the same period last year. It reported an annual net loss of $2.2 billion compared to a loss of $1.1 billion during its last fiscal year.

Sears' total liabilities as of Jan. 28 were $13.2 billion.

Shares of Sears fell more than 10 percent in morning trade on March 22.

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