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BRIEF-Sears Canada raises doubts on ability to continue as going concern
June 13, 2017 / 11:55 AM / 5 months ago

BRIEF-Sears Canada raises doubts on ability to continue as going concern

June 13 (Reuters) - Sears Canada Inc-

* Sears Canada announces first quarter 2017 results

* Q1 loss per share c$1.42

* Q1 revenue fell 15.2 percent to c$505.5 million

* Q1 same store sales rose 2.9 percent

* Sears Canada Inc - ‍company has determined to postpone its 2017 annual meeting of shareholders scheduled for June 14, 2017 to a date to be determined​

* Sears Canada Inc - ‍gross margin rate was 22.6% in q1, as compared to 28.2% for same quarter last year​

* Sears Canada -cash and forecasted cash flows from operations are not expected to be sufficient to meet obligations coming due over next 12 months

* Sears Canada - ‍jeffrey Stollenwerck, who is not standing for re-election as a director at annual meeting, has resigned as a director effective today​

* Sears Canada -had expected to be able to borrow up to an additional $175.0 million (before transaction fees) secured against its owned and leased real estate

* Sears Canada Inc - ‍recently commenced a process to address its liquidity situation​

* Sears Canada - based on current status of negotiations with lenders, amount co expects to borrow under second tranche been reduced to amount up to $109 million

* Sears Canada Inc - ‍sears Canada continued to focus on its new format, with ten stores planned to be completed between june and august, 2017​

* Sears Canada Inc - ‍recently commenced a process to source and structure financial solutions and strategic alternatives​

* Sears Canada Inc - strategic alternatives may include a financial restructuring or sale of company​

* Sears Canada - special committee of board established, comprised of independent directors, to assist with evaluating strategic alternatives

* Sears Canada - based on current assessment, cash and forecasted cash flows from operations are not expected to be sufficient to meet obligations coming due over next 12 mths

* Sears Canada - as result of postponement, Jeffrey Stollenwerck, who is not standing for re-election as director at annual meeting, resigned as director

* Sears Canada Inc - ‍has retained BMO capital markets, as a financial advisor, and osler, hoskin & harcourt llp, as a legal advisor to assist company

* Sears Canada- ‍continues to face very challenging environment with recurring operating losses,negative cash flows from operating activities in last 5 fiscal yrs​

* Sears Canada - based on current status of negotiations with lenders, expects to borrow under second tranche has been reduced to an amount up to $109.0 million

* Sears Canada says ‍ability of co to continue as going concern is dependent on ability to obtain additional sources of liquidity Source text for Eikon: Further company coverage:

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