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3/22/2017 Sears Stock Stumbles After Going­Concern Warning ­ WSJ 1/2 Sears Holdings Corp.’s raised doubts in a securities filing about its ability to keep operating after seven years of losses, sending the retailer’s share price tumbling and spooking some of its landlords. In its annual report released late Tuesday, the Kmart and Sears owner said past operating results indicate “substantial doubt exists related to the company’s ability to continue as a going concern.” The language is typically used when there are doubts about the business’ ability to meet obligations for the next 12 months. Sears quickly added that it is “probable” that cost cuts, asset sales and other actions would mitigate its problems. The warning—the first such for the company—is the latest stumbling block for Sears, whose stock had dropped 39% in the 12 months through Tuesday. The shares fell 12% to $7.98 on Wednesday. In a blog post Wednesday, Sears finance chief Jason Hollar sought to assuage investors, saying the disclosure was in line with regulatory standards and didn’t reflect management expectations for the business’s near-term health. “We are a viable business that can meet its financial and other obligations for the foreseeable future,” he said, adding that the company’s auditors, Deloitte & Touche LLP,
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