Sears says there is ‘substantial doubt’ it can survive

The corporate owner of Sears and Kmart says there is “substantial doubt” that it can continue operating, as brick-and-mortar stores continue to face challenges in an e-commerce world.

In a filing with the Securities and Exchange Commission this week, the corporate owner, Sears Holdings Corp., cited its efforts to cut costs, sell property, tap new funding sources and make other moves to stanch the flow of red ink.

“Our historical operating results indicate substantial doubt exists related to the company’s ability to continue as a going concern,” it said in the filing, its annual report.

Kmart, which has its own lengthy history beginning as a five-and-dime store in Detroit, became a major national presence in the 1960s as a big-box department store, with Blue Light Special discounts geared toward thrifty middle-class Americans.

The program is focused on streamlining its back-office corporate and support functions, changing its product offerings and supply chain, and looking for ways to reshuffle its real estate portfolio.