Sears Going Bankrupt?
1 year ago
The Iconic American Brand Saw Record Lows in Shares
Sears, once the leading retail brand in America, may be experiencing a financial downturn they would not be able to fix if things continue down the same path.
CNN Money reported the future is looking increasingly bleak as Sears shares fell to their lowest levels since 2004 Thursday.
Shortly after Christmas, the retailer—which also owns Kmart as well as the Kenmore, Craftsman and Lands' End brands—announced it was planning to close 100 to 120 Sears and Kmart stores.
In an effort to revive the brand, Sears’ became the sole vendor of the “Kardashian Kollection” clothing line that launched last year. But Sears’ biggest players are appliances. If suppliers like Electrolux and Whirlpool pull out of selling their products in Sears and Kmart stores, analysts said that could be the end of the retail change.
Sears is expected to report massive losses this fiscal year and analysts are forecasting a decline in sales.
A spokesperson for Sears told the media, "Sears Holdings has more than adequate liquidity and ample resources at our disposal which give us significant financial flexibility," adding that it is "important to separate disappointing operating performance with liquidity." The Sears spokesperson said that the company ended December with $4.2 billion in liquidity.