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Sears Plummets After Citing 'Substantial Doubt' About Future
• https://www.bloomberg.comSears Holdings Corp. suffered its worst stock decline in six weeks after acknowledging "substantial doubt" about its future, raising fresh concerns about whether a company that was once the world's largest retailer can survive.
Sears added so-called going-concern language to its latest annual report filing, suggesting that weak earnings have cast a pall on its ability to keep operating. The 131-year-old department-store chain, which has lost more than $10 billion in recent years, was cited last year by Fitch Ratings as a company at high risk of defaulting.
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That rally fizzled with Tuesday's filing, sending Sears's stock down as much as 15 percent to $7.77 in New York trading. It was the biggest intraday drop since Feb. 7.
"Our historical operating results indicate substantial doubt exists related to the company's ability to continue as a going concern," the Hoffman Estates, Illinois-based company said. But the company added that its comeback plan may help alleviate the concerns, "satisfying our estimated liquidity needs 12 months from the issuance of the financial statements."