People of a certain age probably remember Kmart’s Blue Light Specials. “Attention Kmart shoppers,” the store’s PA system would announce. Then a throng of people would stampede to an aisle where an actual blue, flashing light was on a stand to signal great deals. We all would leave shaking our heads in disbelief at how Kmart could afford to sell shag area rugs and lava lamps at such low prices.

For a while now, it has become clear that a flashing red light is probably more appropriate for the Kmart chain. It is in distress, and a new report this week takes the concerns to a new level. Even though Lawrence hasn’t had a Kmart store for years, community leaders should still care greatly about the chain’s future. Kmart operates a distribution center in northern Lawrence and occupies one of the largest industrial buildings in the county.

According to economic development officials, the Kmart Distribution Center just north of the west Lawrence interchange on the Kansas Turnpike employs about 320 people. The question is, for how much longer?

Kmart’s parent company — Sears Holdings, which also owns Sears — this week released its annual report. As the business press has picked up on, the company added a key phrase to the report warning investors that there is significant concern about whether the company can continue to operate.

“Our historical operating results indicate substantial doubt exists related to the company’s ability to continue as a going concern,” the report stated.

That’s not to say the company is going to close in the immediate future. The company in the annual report discusses a strategy to turn things around. But that strategy may not be overly comforting as it concerns the future of distribution centers. It involves selling some real estate, and shifting from a “store-only based retailer to a more asset light, integrated membership-focused company.” The company, like almost every retailer, is trying to shift to more online sales rather than brick-and-mortar storefronts. Whether that lessens the need for distribution centers in the future is a bit unclear. The Lawrence center is one of six distribution centers that Kmart operates, according to the annual report. The company in February announced plans to cut $1 billion a year in expenses.

Certainly everyone should hope for that strategy to work. It is the best chance of survival for the Sears and Kmart chains. But the company’s recently released annual report may make survival more difficult. The markets have seized upon the statement that there is significant concern about whether the company can continue operating. There’s certainly been many people who have had that fear, but this is the first time the company has officially acknowledged a shutdown may be a likely option. Reuters reported Wednesday that vendors are reducing shipments and asking for better payment terms from Sears before they will deliver more merchandise to the company.

All of this, of course, goes back to the company’s financial performance. The company’s statement that “our historical operating results indicate substantial doubt” comes off sounding a bit like the captain of the Titanic saying “parts of the ship are experiencing some dampness.” The company has lost more than $5 billion over the last three years. It has had to borrow money to cover the losses. The company’s long-term debt is now more than $4 billion, according to the report.

Sales at Kmart stores were down 5.3 percent in 2016, and that followed a decline of 7.3 percent in 2015. If there is anything to make Kmart folks feel better, it is only that Kmart is performing better than its sister retailer, Sears. Sales at Sears stores declined 9.3 percent for the year. Kmart now operates 735 stores, down from about 1,400 in 2008. The statistic that gets me is that about 25 years ago, Kmart was larger than Wal-Mart. Today, I’m not sure my kids have ever been in a Kmart.

So, there are plenty of reasons to keep a close eye on Kmart. The loss of jobs at the distribution center would be the biggest blow to Lawrence if Kmart were to close. But there would be other impacts too. The company pays property taxes on about 1 million square feet of industrial space. Its facility at Kresge Road is huge.

That would be a lot of space for economic development officials to try to fill. But who knows, it may create an opportunity for something more vibrant to take its place. When Sears closed its store at 27th and Iowa several years ago, it opened the door for Dick’s Sporting Goods, Ulta Beauty, PetSmart and the Boot Barn to revamp and enliven the space.

But that’s not always the way it works, especially with industrial space. Look at the large buildings along Haskell Avenue that used to house E and E Display group and Honeywell Aerospace, two manufacturers that no longer operate in the community. Those buildings sat vacant for a number of years, and even today they aren’t home to as many employees as they used to be.

Probably all Lawrence can do is watch and wait — and perhaps rub our lava lamps for good luck.