The ownership group behind retail giants Sears and Kmart said Wednesday that the chains may not make a viable company over the next 12 months because of potential liquidity issues.
In a filing with the Securities and Exchange Commission, Sears Holding Company said it was facing severe pressures from the Internet and consumer behavior, and that it was facing historic uncertainties.
“Our historical operating results indicate substantial doubt exists related to the Company’s ability to continue as a going concern,” the filing said. “We believe that the actions discussed above are probable of occurring and mitigating the substantial doubt raised by our historical operating results and satisfying our estimated liquidity needs 12 months from the issuance of the financial statements. However, we cannot predict, with certainty, the outcome of our actions to generate liquidity, including the availability of additional debt financing, or whether such actions would generate the expected liquidity as currently planned.”
The company had previously announced that it was closing dozens of Kmarts around the country, including here in Bakersfield. Sears has a longtime presence in Bakersfield, and is an anchor at the Valley Plaza mall.
In the company’s filing, it blamed the rapidity of the Internet and other factors for its liquidity issues.
“The progression of the Internet, mobile technology, social networking and social media is fundamentally reshaping the way we interact with our core customers and members. As a result, we are transitioning to a member-centric company. Our focus continues to be on our core customers, our members, and finding ways to provide them value and convenience through Integrated Retail and our Shop Your Way membership platform. We have invested significantly in our online ecommerce platforms, our membership program and the technology needed to support these initiatives.
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