Struggling Sears, Kmart set to close more stores
Sears Holdings is closing at least three additional stores as the retailer faces serious questions about its future heading into the crucial holiday shopping season.
The company is closing one Sears store in New York, a Kmart in New York and a Kmart in Virginia, according to layoff notices filed to government authorities.
Business Insider reported that the company is closing another five Sears and three Kmarts for a total of 11 locations in this latest round.
The company has closed several hundred stores in recent years as it tries to stabilize its finances amid deteriorating sales. The most recent round, announced Aug. 23, involved plans to close
13 Kmart stores and 33 Sears locations in November.
As of Aug. 4, the company still had
506 Sears locations, including 482 fullline department stores and 360 Kmart stores, according to a public filing.
Sears spokesman Howard Riefs declined to confirm the latest round of closures, referring instead to the company’s Sept. 13 statement: “We continue to evaluate our network of stores, which is a critical component to our integrated retail transformation, and will make further adjustments as needed.”
Investors are increasingly concerned about the company’s future as it negotiates a potential deal to sell assets to its largest shareholder and CEO, Eddie Lampert.
Lampert has described such a deal as vital to the company’s future, saying it would provide much-needed cash and debt reduction.
Lampert’s hedge fund last month proposed that Sears sell more assets and restructure its liabilities to further extend its life, saying it “must act immediately to have sufficient runway to continue its transformation.”
Sears shares have lost more than 40 percent of their value since that statement. Shares were down 3.9 percent to
78 cents in afternoon trading Wednesday. The company faces a key deadline of Oct. 15, when it must make a $134 million debt payment that could strain its finances.
The latest round of stores to close:
❚ Kmart: 635 Dutchess Turnpike in Poughkeepsie, New York
❚ Kmart at 4251 John Marr Drive in Annandale, Virginia
❚ Sears at Eastern Hills Mall in Willliamsville, New York