TORONTO—Sears Canada, known for its catalogues that were a household staple for generations, says there is “significant doubt” about its future and it could sell or restructure itself.
The struggling retailer, which tried to reinvent itself last year with a new corporate logo, 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.”
In a retail world dominated by the likes of Amazon, Sears Canada has floundered, a relic of a bygone shopping era where the department store was king.
