DETROIT (WWJ) – Facing continued financial trouble, Sears Holdings Corp. — parent company of both Sears and K-Mart — says it will close an additional eight Sears stores and 35 K-Mart stores in the U.S.
This will include the K-Mart outlet along North Monroe Street in Monroe, Michigan.
Sears is already in the process of closing some 300 stores across the U.S., having previously announced locations in Traverse City (store 3009), West Branch (store 3864) and Cheboygan (store 9245) would get the axe.
WWJ Business Editor Murray Feldman reports the company plans to invest in smaller stores that specialize in specific categories.
“Sears CEO Eddie Lampert actually posted a blog today saying the stores that will close are unprofitable and his number one mission is to return the company to profitably,” Feldman said.
Sears Holdings Corp. posted a $2 billion loss in the last fiscal year and their debts have grown by $3 billion as the company admits it’s struggling to survive amid competition from online retailers.
Lampert said in a statement they also plan to reduce the square footage of other stores that are “simply too big.”
“[W]e don’t make decisions to close stores lightly,” he added, saying his goal is to make Sears Holdings “more relevant and more competitive for our members and other constituents.”
The failing stories will be closed by early October, the company said, and eligible employees will receive severance and the opportunity to apply for open positions at other stores.
Sears Canada, a separate company, filed for bankruptcy last month.