Sears and Kmart stores are closing 40 more stores.
Sears Holdings (SHLD) will close 29 stores of Sears and 11 of Kmart by the end of Feb 2019. Already the company has closed around 200 locations and is following up with more closures.
Reducing costs is the prime motive of Sears Holdings to control its finances. The bankruptcy proceedings have been going on for years and the company seems to find itself in more debt.
Sears Holdings is the parent company of both Sears and Kmart. Though it was operating with around 1,000 stores, the company has been underperforming and was forced to close many of its stores. Last month, the company filed for bankruptcy, as only 400 of its stores were churning out a profit, while the rest were not profitable.
Of these about 142 of the stores were the worst performing and had to be shut. The bankruptcy protection was sought in the month of October.
After these closures, there will be 687 stores that will continue to function in both Sears and Kmart. It has around 68,000 employees still working in the existing stores.
The parent company had filed for bankruptcy protection Chapter 11, as many of its locations were not performing well, with competition from rivals. It had to forego its top position to Amazon and Walmart, as they were selling identical products at far lesser prices.
With revenue and sales going downward, the company was not able to control its finances. Sears had borrowed money from its CEO to survive its losses. However, it had to close most of its stores. It also had to sell its Craftsman tool brand.
The 40 stores to be closed are spread all across the vast country. Liquidations sales will begin by next week, says the company.
Shares of Sears have fallen by 85 percent in just a year.