Struggling Sears Canada Is Up For Sale

(RTTNews) - Sears Canada Inc., Tuesday said it is seeking a possible sale or restructuring of its operations, as the company raised "significant" doubt on whether it can continue as a going concern.

The retailer has hired BMO Nesbitt Burns Inc. as its financial adviser and Osler, Hoskin & Harcourt LLP as its legal adviser to look at alternatives.

"The company continues to face a very challenging environment with recurring operating losses and negative cash flows from operating activities in the last five fiscal years, with net losses beginning in 2014," it says in releasing first-quarter results.

The company said its cash flow and forecasted cash flow from operations are expected to be not sufficient to meet its obligations over the course of the next year.

Revenues for the first quarter fell 15.2 percent, as sales continue to decline at the company since it was divested off from parent Sears Holdings Corp in 2012. Same store sales increased by 2.9 percent in the first quarter.