"Our historical operating results indicate substantial doubt exists related to the company's ability to continue as a going concern", the Hoffman Estates, Illinois-based chain said.
In Canada, Sears operates separately from its USA parent but is still controlled by hedge fund manager Edward Lampert, who is chairman and chief executive officer of the US chain.
Last month, the company said it was planning a "strategic transformation" by trimming $1 billion in annual costs.
Saunders said Sears would probably have a hard time meeting its obligations as the year progresses.
Amaya Inc. (NASDAQ:AYA): The company delivered earnings of 53 cents a share for the fourth quarter while analysts expected 43 cents a share. Its sales stood at -11.80% a year on average in the period of last five years.
Customers search for bargains at the soon to be closing Sears store in the NY borough of the Bronx.
He said the doubts referred to in its annual report were simply potential risks that regulators require companies to disclose.
"They're past the tipping point", Perkins said.
Three other retail locations that Sears Holdings owns in SC also are going dark.
Johnson, though, believes one avenue for Sears could be returning to its roots as a direct-to-consumer company, only using the internet versus the old catalog. In January, it announced the latest round of store closings, identifying 150 underperforming locations.
Sears Holdings hasn't turned an annual profit since 2010. "Sometimes multiple retailers to take those large spaces", Bell said. Nevertheless, Sears Holdings shares have steadily fallen over the last decade under his leadership, contributing to a decline in his net worth from more than $3 billion to just over $2 billion, according to estimates by Forbes magazine.
In 2012, the company reported almost $20 billion in total assets with more than 2,500 stores open.
But the filing also makes clear that additional asset sales could prove problematic. But it noted in the 10-K that as part of the Craftsman sale, it reached an agreement with the Pension Benefit Guarantee Corp. that puts a claim on some Sears' assets to protect the pensions of retired employees.
Sears Holdings sales have been imploding for years now, and the company has now lost a total of nearly $10 billion in the last six years.
The warning on Tuesday added a new element of uncertainty for a company that has $13.19 billion in liabilities and said it could have difficulty obtaining merchandise from vendors.