Sears Canada May Close their Doors
Sears Canada warned Tuesday are feafrul -about closing the doors and may have to either restructure or be sold.
Sears has been trying to reinvent itself but has been having a hard time to find additional funding to do so
“Based on current assessment, cash and forecasted cash flows from operations are not expected to be sufficient over the next 12 months,” the company said.
Stocks have now dropped by 34 cents
Sears has hired BMO Capital Markets as a financial adviser, and Osler, Hoskin & Harcourt LLP as a legal adviser.
The company is the latest retailer to report difficulties amid a tough environment that has seen a big push to online shopping.
Sears reported its first-quarter revenue dropped by 15.2 % from the same quarter last year.
Reasons claimed for the revenue drop included:
- A “significant” reduction in printed catalogues due to lower customer demand.
- Some products not being available online
- A cut in the number of its merchandise pickup locations.
10 new-format stores are expected to be completed between June and August this year of 2017 , which would give the company a total of 14 revamped outlets by the end of its current fiscal year.