The disclosure comes after more optimistic signs from the company, which has been working on a turnaround under Chief Executive Officer Eddie Lampert.
The warning comes less than six weeks after the company announced what it called the "next phase of its strategic transformation", in which it hoped this year to reduce costs by $1 billion and cut its debt and pension obligations by at least $1.5 billion.
Shares of Sears plunged almost 13 percent Wednesday morning after the announcement. The business had revenue of $6.05 billion for the quarter, compared to analyst estimates of $5.89 billion.
Sears has shuttered four Western Pennsylvania locations in recent years: Wilkins in 2013, Century II Mall in 2014, Pittsburgh Mills in 2015 and Clearview Mall last year.
Sears says its doubt is based on years of losses and attrition in sales.
Customers search for bargains at the soon to be closing Sears store in the NY borough of the Bronx.
Sears Holdings Corporation (NASDAQ:SHLD) warned on Tuesday about its ability to continue as a going concern after years of losses and declining sales.
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"They've got all kinds of issues", said Noel Hebert, an analyst at Bloomberg Intelligence. "As we move towards the last quarter, I think we'll find there are more and more suppliers that are not necessarily willing to engage with Sears" and will demand cash up-front. They are operated by Sears Holdings. He pledged to return Sears to greatness, leveraging its best-known brands and its vast holdings of land, and more recently planned to entice customers with its loyalty program. "Sometimes multiple retailers to take those large spaces", Bell said. The company has also placed some of its stores into a real estate investment trust, sold its Craftsman line of tools and repeatedly raised debt from Lampert's hedge fund.
"While our historical operating results indicate substantial doubt exists, we want to be very clear that we're taking decisive actions to mitigate that doubt", Howard Riefs, a Sears spokesman, said in an email.
Mr. Lampert owned almost 10 per cent of the real-estate investment trust that paid Sears $2.6-billion for stores that it purchased, many of which were then leased back to the retailer.
The company has lost $10.4 billion since 2011, the a year ago that it made a profit.
Sears had total borrowings of $4.16 billion as of year end and will continue to look at ways to increase its value across a range of assets.
The company said an inability to generate additional liquidity might limit its access to new merchandise or its ability to procure services.