[projekktor id=’28342′]

Sears Canada is warning there is “significant doubt” about the company’s ability to continue and says they have begun exploring strategic alternatives, including the sale of the company.

The retailer made the announcement Tuesday as it released its first quarter results which saw a 15.2 per cent decline in revenue.

“The company continues to face a very challenging environment with recurring operating losses and negative cash flows from operating activities in the last five fiscal years, with net losses beginning in 2014,” Sears Canada said in a statement.

They recently began a process to address the company’s liquidity situation and to source and structure financial solutions to continue to finance its business.

The company said based on its current assessment, cash and forecast cash flows from operations are not going to be enough to meet its obligations over the next 12 months.

Sears Canada had expected to be able to borrow $175 million, but based on the current status of negotiations with the lenders, the company now expects to borrow only about $109 million.

A special committee comprised of independent directors has been established to assist the Board of Directors with the process.

Sears Canada postponed its annual meeting, which had been scheduled for Wednesday, until an unspecified date.