Sears CFO says the company’s outlook not as dire as you think

HOFFMAN ESTATES, Ill. — Sears Holding tried to walk back the uproar it caused early Tuesday morning when the struggling retailer included cautionary language about whether it would be able to continue as a "going concern” in its annual 10-K filing. 

 

On Tuesday afternoon, the chain released a detailed statement from CFO Jason Hollar in which he explained the inclusion of the language that caused the uproar was meant to adhere to “regulatory standards.

 

“To clarify, the comments from our Annual Report quoted by the media are in line with regulatory standards that require management to assess and disclose potential risks the company could face within one year from the reported financial statements,” Hollar stated. “As 2016 proved to be another challenging year for most “bricks-and-mortar” retailers, our disclosures reflected these developments.” 

 

He noted that media reports generated by the filing failed to include the actions Sears is taking to mitigate its financial risks and boost its liquidity. These include the recent sale of its Craftsman tool brand, the selling of select real estate assets, and a restructuring program targeted to deliver at least $1 billion in annual cost savings. 

 

“In line with these initiatives, despite the risks outlined we remain confident in our financial position and remain focused on executing our transformation plan,” Hollar stated. 

 

To read Hollar’s full statement, click here.