US store’s cash fear

SHARES in US department store chain Sears tumbled more than 13pc after it warned it might not have enough cash to stock its shops.

It followed an announcement in January that it planned to close 150 stores, followed by a restructuring the following month.

Yesterday, Sears said it faces ‘ substantial doubt’ about its ability to stay in business unless it can borrow more cash. Its plight paints a bleak picture of US stores, which have been losing shoppers to online retailers.

Rivals Macy’s and Kohl’s have suffered sharp falls, and shut hundreds of stores.