Sears Canada the struggling retail giant warned 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.
“Based on management’s current assessment, cash and forecasted cash flows from operations are not expected to be sufficient to meet obligations due over the next 12 months,” the company said.
This week Gymboree filed for bankruptcy protections, making it the latest casualty in a long line of troubled retailers.
The children’s clothing retailer said it has reached an agreement with its lenders that will allow it to stay in business as it attempts to restructure. It has arranged to borrow an additional $35 million to finance operations during the restructuring.
Some of its stores will be closed as part of the restructuring, but the timing of that and which shops will be closed have yet to be determined, the company said. The chain has many stores across Canada and at this point there is plenty of uncertainty. – CINEWS