Consumer electronics giant Sharp, known for its HDTVs and displays, is struggling to stay afloat after reporting huge losses in the first 6 months of this year. The company reported a 16 percent decrease in sales, resulting in a loss of over $4 million.
“Sharp is in circumstance in which material doubt about its assumed going concern is found,” the company said in a statement, essentially telling investors that it doesn’t know how much time is left.”
Yet at the same time the company is insisting that its restructuring efforts, which include selling off factories and laying off over 10,000 workers, will be enough for them to secure a line of credit and turn things around.
Investors don’t appear to have much confidence in the company’s promises, and their struggle last month to provide screens for the new iPhone 5 didn’t help. The company had to repeatedly delay shipments for several weeks after being forced to mortgage the factory that was producing them.