Sears and Kmart might not have enough money to stock their shelves

Sears, an icon of US retail, may shut its doors

"Our historical operating results indicate substantial doubt exists related to the company's ability to continue as a going concern", Sears said in its annual report for the fiscal year ended January 28. The companys revenue was down -17.1 % compared to the same quarter last year.During the same quarter in the previous year, the company posted $-1.70 EPS.

Sears has upped its presence online, but is having a hard time disguising its age. It has $4.2 billion in debt, up from $3 billion a year ago.

Sears says its doubt is based on years of losses and attrition in sales.

The first Sears store opened in the 1890s.

The company has been considering selling other businesses such as the Kenmore appliances and DieHard auto battery brands.

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Sears Holdings Corp Last issued its quarterly earnings results on Mar 9, 2017. But Sears also has faltered because of its management's decisions, including the sale of its more than $30 billion credit portfolio to Citibank in 2003, and a merger with Kmart that tied together two struggling chains.

Sears has disclosed it may not be able to continue as a going concern despite a turnaround effort that has included selling stores and moving to a membership-focused business model.

Sears Holdings hasn't turned an annual profit since 2010.

Landlords are now looking at splitting up Target locations for multiple retailers, rather than replacing Target with just one merchant, although chopping up the space for multiple players can be costlier, said consultant Mr. Williams.

Recently, Sears had put some stores into its real estate investment trust or REIT, sold Craftsman its line of tools and raised debt repeatedly from the hedge fund of CEO Edward Lampert.

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Sears Holdings, once the largest USA retailer, warned on Tuesday about its ability to continue as a going concern after years of losses and declining sales.

Lampert owned close to 10% of the REIT that paid $2.6 billion to Sears in 2015 for its stores that it purchased, of which many were leased back to the longtime retailer.

But the filing also makes clear that additional asset sales could prove problematic.

The agreement "contains certain limitations on our ability to sell assets, which could impact our ability to complete asset sale transactions or our ability to use proceeds from those sales to fund our operations", the company said.

Sears Holdings Corp. suffered its worst stock decline in six weeks after acknowledging "substantial doubt" about its future, raising fresh concerns about the survival of a company that was once the world's largest retailer.

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