The company said last month it would cut costs by $1-billion and reduce debt and pension obligations by at least $1.5-billion this year.
Recently, Sears had put some stores into its real estate investment trust or REIT, sold Craftsman its line of tools and raised debt repeatedly from the hedge fund of CEO Edward Lampert. "They've been delusional about their ability to turn around the business", said Perkins.
At this point, the stores are doing all they can to stay afloat but have expressed "substantial doubt" about chances of survival.
If Sears stumbles, its landlords will be in a tough spot because many of them are still grappling with trying to fill empty Target stores following that USA retailer's failure in Canada in early 2015.
On Tuesday, Sears Canada said it had sealed a credit agreement for a five-year secured term loan of up to $300-million with KKR Capital Markets LLC and GACP Finance Co. He has been attempting to orchestrate a turnaround for the brand, which struggles to survive in a retail environment that has become increasingly tricky for physical stores. "Sometimes multiple retailers to take those large spaces", Bell said.
The Sears catalog was an emblem of the post-World War II consumer boom in the United States but the company was unable to adjust to the changing retail landscape and rising competition from Wal-Mart Stores, Target Corp and others.
Sears or Sears, Roebuck and Company as it was formally known has been a "fixture" in mainstream society for more than 130 years.
Sears Holdings Corp. acknowledged "substantial doubt" about its ability to keep operating, raising fresh concerns about a company that has lost more than $10 billion in recent years.
Lampert owned close to 10% of the REIT that paid $2.6 billion to Sears in 2015 for its stores that it purchased, of which many were leased back to the longtime retailer.
But the filing also makes clear that additional asset sales could prove problematic.
But it added that "we cannot predict, with certainty, the outcome of our actions to generate liquidity, including the availability of additional debt financing, or whether such actions would generate the expected liquidity as now planned" and a failure to a failure to generate additional liquidity "could negatively impact our access to inventory or services that are important to the operation of our business".
As part of the Craftsman sale, Sears Holdings reached an agreement with the Pension Benefit Guarantee Corp.
Sears had total borrowings of $4.16 billion as of year end and will continue to look at ways to increase its value across a range of assets.