Sears sparks fears over survival possibilities, stock price tumbles

US retailer Sears Holdings said on Wednesday that there is “substantial doubt” about whether it can secure its future in a fast-moving retail sector, leading to its shares tumbling more than 15%.

The company has recorded significant losses for the last number of years as consumers increasingly become attracted to firms offering digital shopping mechanisms.

Sears was down 15.27% in pre-market trading after the release of the statement from the company in its annual report.

"Our historical operating results indicate substantial doubt exists related to the company's ability to continue as a going concern," Sears said in the annual report for the fiscal year ended Jan. 28.

In the fiscal year, Sears reported losses of $2.2bn, thus failing to turn an annual profit since 2010, just five years after its merger with Kmart.

The statement said that the retail company would struggle to raise the liquidity needed, limiting its access to new merchandise or its ability to procure services, but remained optimistic that it would be able to turn the business around.

Sears also said it would consider the sale of assets such as Kenmore appliances and DieHard car batteries.