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Kmart said to close 64 more stores as Sears division retrenches
[NEW YORK] Sears Holdings Corp will close an additional 64 Kmart stores, according to a person familiar with the matter, a sign the chain is stepping up efforts to shutter underperforming locations.
The stores will be shut down by mid-December, according to the person, who asked not to be identified because the move hasn't yet been announced. The store closings come in addition to a push earlier this year to eliminate 68 Kmarts and 10 Sears stores.
Sears, which merged with Kmart more than a decade ago, has struggled to maintain sales at the discount chain. The overall company has lost more than US$9 billion in recent years, hurt by slowing mall traffic and a shift away from department stores.
Edward Lampert, the hedge fund manager who serves as Sears's chief executive officer and top investor, has been coping with the red ink by shrinking operations and unloading assets.
The company also spun off some properties into a real estate investment trust last year, generating about US$2.7 billion.
Still, the company continues to burn cash. Sears lost US$395 million in the most recently reported quarter, which ended July 30. Mr Lampert's firm, ESL Investments Inc, agreed to lend Sears US$300 million last month to help keep the chain going.
Sears fell 2.7 per cent to US$11.79 as of 3:46pm in New York on Monday. The shares had already declined 41 per cent this year through the end of last week.
The Kmart store closings were previously reported by Business Insider.