AP: Sears 'has struggled for years with weakening sales'
10 Sears stores, 68 Kmart stores closing their doors...
NEW YORK - Sears Holdings Corp. will close another 78 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 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.
All 10 Sears stores and nearly all the Kmart stores will close in late July. 2 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"
The closings follow a comprehensive review of the company's locations that took into account store performance and the timing of lease expirations.
Sears Holdings has struggled for years with weakening sales, unable to keep up with companies that sell appliances, like Home Depot, or general merchandise, like Wal-Mart, or everything, as is the case with Amazon.com.