NEW YORK (AP) – Sears Holdings Corp. will close another78 stores -68 Kmart units, and 10 Sears stores – as it looks to restore profitability.
That accounts for about 5 percent of its store base, which is nearly 1,700 stores.
The ailing company, based in Hoffman Estates, Illinois, had said in February that it would accelerate the closing of unprofitable stores following a “challenging” holiday season. The move announced Thursday is expected to generate a “meaningful level” of cash from the liquidation of store inventories and from the sale or sublease of some of the related real estate, it said Thursday.
All 10 Sears stores and nearly all the Kmart stores will close in late July. Two Kmart stores will close in mid-September.
“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 CEO of Sears Holdings in a statement. “We’re focusing on our best members, our best categories, and our best stores as we work to accelerate our transformation.”