Sears' stock price, which hit an all-time low last month, tumbled more than 14 percent Wednesday to $7.80.
Sears has been a member of the retail dead pool for years, but until this week the company had not openly acknowledged its tenuous existence, said Ken Perkins, who heads the research firm Retail Metrics LLC.
Industry analysts have placed the staggering sums of money that Sears is losing beside the limited number of assets it has left to sell, and believe the storied retailer may have reached the point of no return.
The money troubles at Sears are no secret - it's lost more than $10 billion since 2011, including a $2.2 billion deficit past year. Please check your email for a welcome confirmation.
"They're past the tipping point", Mr. Perkins said. Sears has $466 million in receivables, down substantially from 2012, when the company had $635 million United States in receivables and $609 million USA in cash.
At the start of 2006, the first year after the merger of the Sears and Kmart chains, Sears Holdings had 3,400 USA stores. It now operates 1,430, a figure that has been vastly reduced in recent years.
Just after JCPenney released a list of 138 stores it will close this year, including one in Richmond, fellow struggling retailer Sears has cast doubt on the future of its own stores. Sears has been trying to stay afloat In 2005, Lambert combined Sears and KMart after successfully pulling KMart from the brink of bankruptcy. But it says pension agreements may prevent the sale of more businesses, potentially leading to a shortfall in funding.
"Our historical operating results indicate substantial doubt exists related to the company's ability to continue as a going concern", Sears said in the report. Sears announced a restructuring plan in February with the hope of cutting costs. And it's reconfiguring its debts to give itself more breathing room. And while it's reconfiguring its debts, the bottom line is that Sears still needs to get more people coming through its doors or shopping for Sears brands online. Annual revenue, meanwhile, declined 12 percent to $22.1 billion. It plans to use much of the $900 million it received for the sale of Craftsman to shore up its pension plan.
But the filing also makes clear that additional asset sales could prove problematic.
As for Sears Holdings, it says it has not turned an annual profit since 2010.
In addition, there are new players that have further revolutionized the market, namely online sales giant Amazon.com.
Saunders said Sears would probably have a hard time meeting its obligations as the year progresses.
There is only one Kmart store on Staten Island, and its fate is unclear as it is located in New Dorp's Hylan Plaza, a shopping center that is getting a major overhaul.
Still, Sears Holdings has been in trouble nearly since the 2005 merger that joined the two department store brands.
Indeed, since then everything seemed to go wrong for Sears, whose roots date to the dawn of the 20th century.
The most recent round of closings, announced in January, claimed 108 Kmart and 42 Sears stores.
Indeed, Sears confirmed those fears in its filing, saying that an inability to raise more cash might limit its access to new merchandise or its ability to procure services.