Sears Holdings announced they will be closing 68 Kmart stores and 10 Sears stores this summer to accelerate its transformation and its return to profitability.
In February the company announced it would close unprofitable stores.
According to a press release from Sears Holdings, the announcement follows a comprehensive evaluation of the company’s store portfolio that took into account historical and recent store performance, and the timing of lease expirations. All of the Sears stores and nearly all of the Kmart stores will close in late July; two Kmart stores will close in mid-September. Of those three Kmart stores in Texas will be closing located in El Paso, Mission and Sweetwater.
“The decision to close stores is a difficult but necessary step as we take aggressive actions to strengthen our company, fund our transformation and restore Sears Holdings to profitability,” said Edward S. Lampert, chairman and chief executive officer of Sears Holdings. “We’re focusing on our best members, our best categories and our best stores as we work to accelerate our transformation.”
Sears Holdings hopes the store closures generate cash from the liquidation of store inventory and from the sale or sublease of some of the related real estate.
Eligible associates impacted by these store closures will receive severance and will have the opportunity to apply for open positions at area Kmart or Sears stores.
“We are committed to treating these associates with respect and compassion during this process,” Lampert said.
The closing Kmart and Sears stores will begin liquidation sales on May 12 and April 29.