Who could have predicted this? What a shocker? This is another dead canary in the coal mine. Sears/Kmart is the anchor for hundreds of dying malls across the country. The extend and pretend on developer loans for these malls is over. No rent = no debt & principal payments = developer bankruptcies. REITs have been crashing as the smart money tries to escape the coming calamity. More bank losses, real estate developer bankruptcies, and tens of thousands in lost jobs. Don’t worry – all is well.
The United States of America also has a going concern problem, but that is a few years off. Just don’t think about it. It’s only maff.
Sears Plummets After Citing ‘Substantial Doubt’ About Future
Sears Holdings Corp. suffered its worst stock decline in six weeks after acknowledging “substantial doubt” about its future, raising fresh concerns about whether a company that was once the world’s largest retailer can survive.
Sears added so-called going-concern language to its latest annual report filing, suggesting that weak earnings have cast a pall on its ability to keep operating. The 131-year-old department-store chain, which has lost more than $10 billion in recent years, was cited last year by Fitch Ratings as a company at high risk of defaulting.
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