Sears has admitted what TheStreet says “everyone already knew” — that the company is almost dead.
“Sears indicated in its newly filed annual report that ‘substantial doubt exists related to the company’s ability to continue as a going concern.’ For those clickbait-loving headline writers out there with no financial services training: what Sears essentially said is that yes, it’s unsure if it could stay in business,” TheStreet reports.
The report adds: “Sears’ cash position has melted from a high point of $1.7 billion for the 2009 calendar year to a mere $286 million to close out 2016. Revenue hasn’t grown since the credit boom lifted all ships in retail in 2006. The company hasn’t generated cash flow from its operations since 2006.”
TheStreet also notes: “In effect, Sears has admitted that its current asset base is worth less than its ridiculous comments made in recent years (you should see the zombie properties out there for sale in rural America). Moreover, it has admitted that no matter what it does, such as deliver on the $1 billion in recent cost cuts it has promised, the business will still likely die.”