(Photo: Tim Durkin/Quinte News)
Sears Canada is reviewing its strategic alternatives including the possible sale of the company as it warns there is “significant doubt” regarding its ability to continue as a going concern.
The retailer says that based on management’s current assessment, cash and forecasted cash flows from operations are not expected to be sufficient to meet its obligations over the next 12 months.
Sears Canada says it had expected to be able to borrow $175 million, but now expects to borrow only about $109 million.
The announcement came as it reported a first-quarter loss of $144.4 million and a 15.2 per cent decline in revenue compared with the same quarter last year.
