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Sears Holdings slides on ‘going concern’ reference
In a nervy market, retailer Sears Holdings Corp (NASDAQ:SHLD) took a beating as it warned over its future if its latest turnaround plan falters.
A 10-k document filed yesterday included a going concern notice, even though it added its revival strategy unveiled in February to cut stores and reduce staff would be sufficient for a year at least.
“However, we cannot predict, with certainty, the outcome of our actions to generate liquidity, including the availability of additional debt financing, or whether such actions would generate the expected liquidity as currently planned,” the document added.
The embattled retailer currently has debts of US$4.2bn, up from US$3bn a year ago.
Sales at K-Mart and Sears owner have dropped by US$10bn in the last six years, while credit ratings agency Fitch has estimated the retailer needs to raise US$2bn to right itself.
Shares tumbled 11% to US$8.06.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/175228/sears-holdings-slides-on-going-concern-reference-175228.html
