HOFFMAN ESTATES, Ill. — Kmart's parent company delivered some not-so-happy holiday news last week.
Sears Holdings said last Tuesday that it will close between 100 and 120 underperforming Kmart and Sears stores, following dismal holiday sales results for the brands.
The company said it has not yet identified which stores will be shuttered, but said that the closures are part of an overall plan to shift its focus from shoring up underperformers to concentrating its efforts on stronger stores.
"Given our performance and the difficult economic environment, especially for big-ticket items, we intend to implement a series of actions to reduce ongoing expenses, adjust our asset base, and accelerate the transformation of our business model," Sears Holdings CEO Louis D'Ambrosio said. "These actions will better enable us to focus our investments on serving our customers."
Sears said that the store closings will generate $140 to $170 million in cash from inventory sales. It anticipates additional proceeds from the sale or sublease of real estate holdings.
The retailer had announced numerous closings this year, but this is the largest group of closings to date.