Sears and Kmart could be headed toward bankruptcy and the corporate owner is pointing pointing to online shopping and competition as two of the main threats.
According to multiple reports on Tuesday, Sears Holding Corporation said that there was “substantial doubt” that it can continue its current services, citing efforts to cut costs, sell property and find new revenue sources as the companies continue bleeding money.
“Our historical operating results indicate substantial doubt exists related to the company’s ability to continue as a going concern,” Sears reportedly said during its annual filing with the Securities and Exchange Commission on Tuesday.
Sears has stores in Bergenfield, Hackensack, Midland Park, Paramus and Wayne. Kmart has stores in Elmwood Park, Passaic and Wayne.
Sears has reportedly lost more than $5 billion over the last three years despite closing several stores and restructuring the company's business model several times.
NorthJersey.com reported that some shoppers are saying that Sears has not kept up with the changing times.
Sales have declined as competition in the form of Walmart and Target, as well as online shopping have more prevalent and taken a larger share of the market.
Company shares dropped more than 13% following the sec filing, The New York Times reports.
Earlier this year, Sears said there were approximately 1,400 Sears and Kmart stores in the United States, less than half of what existed a decade ago.