American retail giant Sears faces closure

Sears, once the monolith of American retail, says that there is “substantial doubt” that it will be able to keep its doors open. Company shares, which hit an all-time low last month, tumbled more than 5 per cent before the opening bell yesterday. Chairman and chief executive Edward Lampert's hedge fund has forwarded millions in funding to keep Sears afloat but with sales fading, it is burning through cash.

According to its most recent regulatory filing late on Tuesday, Sears lost more than $2bn (£1.6bn) last year. Adjusted for one-time charges, its loss was $887m. Sears, which employs 140,000 people, has been selling assets but says its pension agreements may prevent the spin-off of more businesses, potentially leading to a shortfall in funding.