Sears Holdings Announces Closing 68 Kmart and 10 Sears Stores

Sears Holdings Announces Closing 68 Kmart and 10 Sears Stores

This summer Sears Holdings, the retail stores brand is shuttering some of its Kmart and Sears stores to cut cost. On Thursday, the struggling Hoffman Estates, Illinois based company said it will close sixty eight Kmart and ten Sears stores to make up for losses.

This announcement from Sears comes as an additional move to an earlier decision to shutter fifty other stores. The retailer had a disappointing holiday sales season and its general sales figures have also dropped.

Shares of Sears increased 6.3perent in the afterhours trading on Thursday at $19.15 a share.

In a statement, Edward Lampert , the CEO of Sears Holdings said, "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 retailer said all of the Sears stores and almost all of the Kmart stores will shutter by late July. Two of the Kmart stores will shutter in the middle of September. The Kmart and Sears stores that are closing will hold liquidation sales that are slated to begin from May 12 and April 29. Sears said, the proceeds from the liquidation sales and the revenue from subleasing closed stores are considered "important steps". The $1.2 billion debt financing that is focused at restoring profitability is also important for the company.

In the quarter which ended on January 30, Sears Holdings reported loss of $580 million. That compares to $159 million loss in the same quarter, one year back.