In what seems to be a bad news to the Sears Canada employees, the firm had warned Tuesday there are doubts about its ability to continue operating, and says it may have to restructure or be sold.
Earlier Sears hoped of tapping into about $175 million, minus transaction fees, through an existing loan arrangement secured against its real estate holdings. But the way negotiation are with the lenders, Sears may end up getting just $109 million.
As per the first quarter results, The company continues to face a very challenging environment with recurring operating losses and negative cash flows from operating activities in the last five fiscal years, with net losses beginning in 2014.
Sears’s financial troubles come as it begins to make progress in its reinvention initiatives under executive chairman Brandon Stranzl, who came to the helm almost two years ago.
Sears said it has struck a special committee of its board of directors to help in the process of seeking alternative actions to fix its problems.
The annual meeting which was earlier set for Wednesday has been postponed because of the financial situation.