Sears shares are tumbling Wednesday after the company told investors that it has “substantial doubts” about its ability to stay in business.
Shares of the 131 year-old company are down 13% as of 10:20 AM EST. The stock has lost 96% of its value since 2007, as the owner of the Sears and Kmart stores struggled to keep pace with changing consumer tastes and online competition. Revenues have been falling and losses and debt mounting. The company has lately been closing stores and selling off real-estate to meet its need for cash.
In its annual report, filed Tuesday, Sears said that “historical operating results indicate substantial doubt exists related to the company’s ability to continue as a going concern.”
Going concern refers to a company’s ability to remain in business.