June 13, 2017 / 12:35 PM / a month ago

CORRECTED-UPDATE 1-Sears Canada explores sale, raises 'going concern' doubts

2 Min Read

(Corrects paragraph 6 to say Sears Canada was spun off from Sears Holdings in 2012, not 2013)

June 13 (Reuters) - Sears Canada Inc said on Tuesday it was exploring strategic alternatives including selling itself, and flagged doubts about its ability to continue as a going concern, following years of losses and declining sales.

The retailer said it had recently begun a process to address its liquidity situation to continue to finance its business.

The company said it had retained BMO Capital Markets as financial adviser to assist with the process.

In raising "going concern" doubts, Sears Canada followed its U.S. counterpart Sears Holdings Corp, which warned in March about its ability to continue as a going concern.

Sears Canada said its cash and estimated cash flows from operations were not expected to be enough to meet obligations over the next 12 months.

The company's sales have been falling every quarter since it was spun off from Sears Holdings in 2012.

Sears Canada on Tuesday reported a 15.2 percent decline in sales for the first quarter ended April 29 and a net loss of $144.4 million. (Reporting by Ahmed Farhatha in Bengaluru; Editing by Sai Sachin Ravikumar)

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