Sears Holdings (NASDAQ:SHLD) released on Thursday that firm will close 68 Kmart and 10 Sears stores this summer. The firm in February stated that it would speed up closing of loss-making stores. This declaration follows a wide-ranging evaluation of firm’s store portfolio that took into account historical and current store performance, as well as timing of lease expirations. All of Sears stores and around all of Kmart stores will close in late July; two Kmart stores will close in mid-September.
The Chairman and Chief Executive Officer of Sears Holdings, Edward S. Lampert stated that the decision to close stores is a difficult other than necessary step as they take aggressive actions to strengthen their firm, fund their transformation and restore Sears Holdings to profitability. They are focusing on their best members, their best categories, and their best stores as they work to accelerate their transformation.
Sears Holdings antipastos store closures to produce a meaningful level of cash from liquidation of store inventory and from sale or sublease of several of related real estate. Together with more than $1.2B in debt financing that Sears Holdings released it had raised earlier current month to provide capital to execute its transformation and to meet its financial obligations, the firm thinks it has taken important steps toward its primary 2016 objective to restore profitability.
Eligible associates impacted by these store closures will receive severance and will have the prospects to apply for open positions at area Kmart or Sears’s stores. Mr. Lampert added that they are committed to treating these associates with respect as well as compassion during this process.
Mr. Lampert said that Sears Holdings will continue to transform as role of store evolves to fit way that members want to shop. Through their continued investments in Integrated Retail, their stores are a critical component of their strategy as they provide their members with industry-leading innovations such as Meet with an Expert, In-Vehicle Pickup, Return, and Exchange in Five.