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Kmart to close at least eight stores | Chain Store Age
Kmart to close at least eight stores Hoffman Estates, Ill. – Kmart Corp. will close at least eight stores by the end of 2014 as part of broader cost-cutting moves by parent company Sears Holding Corp. Kmart spokespeople sent emails to media outlets in Michigan, Indiana and Iowa announcing that Kmart will close at least five stores in the Detroit area, two in the Indianapolis area and one in Ames, Iowa. In total, more than 900 employees will be terminated as a result of the closings, which are scheduled to happen in early December. Eligible employees will receive severance and have the opportunity to apply for jobs in other area Sears and Kmart stores. Liquidation sales in all stores set for closure will begin Sept. 28. Sears Holding Corp. has been financially struggling for some time. In August, the retailer (which runs both the Sears & Roebuck and Kmart chains) announced its ninth consecutive quarterly loss, amid weak sales. The retailer also announced it may close additional stores on top of the 130 closures that were already underway for 2014. Eddie Lampert, CEO and largest shareholder of Sears Holdings, loaned the company $400 million earlier this month. However, analysts have said the money will only last three months and that Sears will need $4 billion in capital to avoid running out of cash altogether in 2016.
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