More than two dozen Sears and Kmart shops are closing, as the corporate continues to struggle after rising from bankruptcy.
The parent firm of Sears and Kmart called Remodel Co., stated Wednesday that it has “confronted a variety of challenges returning our stores to sustainable ranges of productiveness.”
It plans to shut five Kmarts and 21 Sears shops across the United States and Puerto Rico.
The Sears store at 8501 W. Bowles Ave. in the Southwest Plaza in Littleton is amongst these that will close.
Liquidation sales will start in mid-August, and the stores will close in late October.
The company blamed “a usually weak retail environment” for the closures.
It additionally attributed among the company’s issues to its ongoing court battle with Sears Holdings, the nonetheless-bankrupt remnant of the company that used to own Sears and Kmart.
“These challenges have unfortunately affected our efficiency and restricted our strategic selections,” Transform Co. added.
Rework Co. warned other retailer closures might quickly be on the horizon.
“Our goal stays to return the company to profitability and protect as many roles as possible within the communities we serve,” it stated in a press release.
The corporate said laid-off employees might supply the same quantity of severance that Sears Holdings gave to workers previous to its October chapter.
Sears is shifting ahead on a strategy it believes will revitalize its model.
It plans to “speed up the expansion” of its smaller-format shops, Sears Home & Life.
They are about 10,000 to 15,000 square toes instead of the 160,000-sq.-foot Older shops. They don’t promote attire and instead deal with house items, together with appliances and mattresses.
Transform Co. additionally plans to add the remaining Sears Hometown and Outlet shops to its portfolio once it completes the purchase of the chain.
These shops promote instruments, outside items, and home equipment. Roughly 650 Sears Hometown and Outlet shops remain open.
Sears emerged from a chapter in February. A chapter court approved the sale of a lot of the retailer’s assets to a hedge fund managed by Eddie Lampert, the corporate’s chairman, for $5.2 billion.
After the closures, Sears and Kmart will have about 400 remaining shops.