In a blog post, Sears Holdings chief financial officer Jason Hollar tried to rebut recent headlines that suggested the company was in danger of going out of business.
Of course, most of those headlines are based on assertions Sears itself made in its latest annual report, which acknowledged there were “substantial doubts” about the company’s ability to continue as a going concern.
However, Hollar said the quoted comments “are in line with regulatory standards that require management to assess and disclose potential risks,” he wrote. “While historical performance drives the disclosure, our financial plans and forecast do not reflect the continuation of that performance.”
He noted that “independent auditors have provided Sears Holdings with an ‘unqualified audit opinion.’ This indicates the company remains a ‘going concern,’ which means we are a viable business that can meet its financial and other obligations for the foreseeable future.… [D]espite the risks outlined we remain confident in our financial position and remain focused on executing our transformation plan.”
Still, it’s clear that the 1,430-store chain faces challenges: Yesterday, Reuters reported that vendors have begun to pull back from supplying the company.
(Photo courtesy of Sears Holdings)