Sears has long been struggling, and many employees have claimed that the company may soon go bankrupt. However, the company has consistently refuted these claims. Two executives have left the company this past month. The executive vice president, Jeff Balagna left the company as well as President Joelle Maher. Wall Street also projects the companies earnings to continue to decline as well as those of Kmart, which has merged with Sears.

Additionally, the earnings of Sears Hometown and Outlet Stores, a spin-off of Sears Holdings, has increased their losses in the 3rd quarter from 5 to 90 million dollars. This was blamed on lacking inventory, particularly for apparel. Analysts have also claimed that suppliers have decreased their sales to Sears due to fear of the company’s bankruptcy. A Business Insider report confirms that over 6 suppliers have significantly reduced their shipping of products to the company. The Wall Street Journal has stated that toy maker Jakks Pacific Inc. has completely suspended the sale of their product to Sears. Their has also been widespread closings of stores, with dozens closing just this past month.

Despite these serious problems facing the company, spokesperson Howard Riefs said, “we are absolutely focussed on restoring Sears to profitability.” They believe that the company has many resources and assets to turn things around and save itself from bankruptcy.