Could the end be near for Sears and Kmart?
In a March 21 filing with the Securities and Exchange Commission, Sears Holdings issued a warning that it may not be able to stay in business unless it can come up with more cash.
Sears says there’s ‘substantial doubt’ that it can survive
“Our historical operating results indicate substantial doubt exists related to the company’s ability to continue as a going concern,” the SEC filing said.
In January, Sears Holdings announced plans to close 150 unprofitable Sears and Kmart locations, and sell its Craftsman business. The company also initiated a restructuring program to save $1 billion a year.
Under the program, Sears plans to reduce corporate overhead, more closely integrate its Sears and Kmart operations and improve its merchandising, supply chain and inventory management.
According to the SEC filing, Sears Holdings has about 140,000 employees, including part-time workers.
Clark said on the radio show that you can expect the flood of store closures to continue.
“The reality is that America has been overstored. We have far too many retail locations, shopping centers and branches of different chains,” Clark said. “But stores that are meeting your needs with low prices will continue to thrive.”
In the meantime, Clark wants you to avoid buying gifts cards to Sears, Kmart or any retail stores or restaurants that may not be around much longer.